Most Read from BloombergAsset managers flipped to a net long Aussie dollar position in the week ended Oct. 8, according to Commodity Futures Trading Commission data.
An improving view of China, Australia’s largest trading partner, also helped both asset managers and hedge funds simultaneously turn bullish on the currency for the first time since May 2021.
The Aussie dollar rallied to the highest in 19 months in late September following China’s stimulus announcement.
Asset managers’ bullishness on the Aussie dollar may be premature, with a momentum indicator signaling further downside for the currency.
Along with uncertainties on China’s stimulus measures, Australian employment and inflation data due this month may also induce caution due to their potential to sway RBA bets.
..
News articles remains the property of the source. Tellbrief is a news aggregator.