14.07.2015 - Hedge Funds Target Australian Dollar for Bet Against China
Hedge funds wary of a slowdown in China are betting against the Australian dollar. The Aussie has long been viewed as the currency of choice to bet against for funds worried about China’s economy. But having traded above parity with the U.S. dollar as recently as May 2013, it has fallen sharply in recent years and has continued its decline over the past month as China’s stock market has tumbled. That looks likely to have benefited funds who piled into bets against the currency in recent months. According to data from the U.S. Commodity Futures Trading Commission, bets taken by leveraged funds on the Australian dollar falling leaped by almost 60% between May 19 and July 7. Positioning data from the Commodity Futures Trading Commission covers a small slice of an enormous market, but they’re a reasonable proxy for speculative flows as a whole...............................................Full Article: Source
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