Hedge Funds Turn Bullish on the Aussie

  • Australian currency has rebounded from a nearly seven-year low
  • Traders were last positioned for Aussie gain in May: CFTC data

Hedge funds and other large speculators turned bullish on the Australian dollar last week for the first time since May 2015, while Macquarie Bank Ltd. said selling South Korea’s won is now the favored way to bet against China.

Although Asia’s largest economy is the primary destination for both Australian and South Korean exports, the Aussie’s 0.6 percent drop this year pales in comparison to a 4.2 percent slump in the won that’s come as China’s benchmark equity index has plunged. Expectations of relative price swings for the Australian dollar are the lowest since the first half of 2015 when compared with a JPMorgan Chase & Co. index for the overall currency market…

Hedge Funds Turn Bullish on the Aussie

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