...these funds are betting against China in effect (arising from...

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    ...these funds are betting against China in effect (arising from possible headwinds from economic confrontation with Trump's forthcoming trade war) and hedging against recession (as recession will hit commodities hard).
    ...there is little Australia can do as it stands in the way of US-China trade war (which is yet to fully blown yet) as its economy is not well diversified enough.
    Hedge funds bolster $A shorts

    Nicola Blackburn

    Hedge funds piled into short positions in the Australian dollar in the week to March 18, extending and even more bearish stance on the currency’s prospects.

    The net short contracts climbed to -29,900 from -23,800 the week prior, widening the combined short position of leveraged funds and asset managers to $6.7 billion up from $6.2 billion the prior week.

    The moves were despite a rise in the Australian dollar, according to Sean Callow, an FX analyst at InTouch Capital Markets.
    Asset managers remain significantly more bearish than hedge funds, but trimmed shorts slightly to -36,000 contracts from -38,400 over the week.
 
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