Hedge Funds Get Aussie Bets Wrong Second Time

Commodity Futures Trading Commission data show the most-bullish six-week change to Aussie positions in more than 1 1/2 years over the period to April 22, just in time to catch a slump that made the local dollar the past week’s worst performer among 10 currencies tracked by Bloomberg Correlation Weighted Indexes. Earlier this year, futures traders were forced to abandon near record bets on declines when the Aussie rallied from the 3 1/2-year low reached on Jan. 24.

“The Aussie is in a steady range and, rather typically, short-term money is getting poorly positioned at both ends of the ranges,” said Hugh Killen, Westpac Banking Corp.’s Sydney-based global head of foreign exchange. “The market has got itself long at relatively unattractive levels and we could see a further sell-off as a result.”

The local dollar slid 1.5 percent in the past week against other major peers, the Bloomberg indexes show, after an April 23 report showing subdued inflation eroded bets the central bank will increase rates this year. The currency will probably fall to 88 U.S. cents by year-end from 92.43 cents as of 12:15 p.m. in Sydney, according to the median of forecasts compiled by Bloomberg.

 

http://www.bloomberg.com/

Related Posts

  • 77
    The hedge fund industry used to have humble beginnings: in 1990, it had $40 billion in assets under management. Now, its growing appeal has led to a staggering $2.6 trillion in 2013. In retrospect with the mutual funds industry and the global financial markets, this is a small figure. However,…
    Tags: hedge, funds, trading
  • 77
    What is a Hedge Fund?  A hedge fund is an aggressively managed investment fund that is maintained by a professional management firm. Hedge funds are typically a portfolio of investments that makes use of advanced and complex investment strategies like short and long positions, leveraged positions, arbitrage, and derivative positions…
    Tags: hedge, funds, trading
  • 74
    Czech Republic wants a piece of the rising hedge fund industry, after a new EU regulation named AIFMD (Alternative Investment Fund Manager Directive)  takes effect in July. Previously the highest number of hedge funds, after the U.S., are domiciled in Luxembourg, a tiny EU state. But the new EU rules, which…
    Tags: hedge, funds, will, u.s, trading
  • 69
    In 1992, George Soros brought the Bank of England to its knees. In the process, he pocketed over a billion dollars. Making a billion dollars is by all accounts pretty cool. But demolishing the monetary system of Great Britain in a single day with an elegantly constructed bet against its currency?…
    Tags: hedge, funds, currency, rates, exchange, money, traders, wrong, foreign, bank
  • 68
    Examining the HSBC Hedge Weekly voluntary performance update, it appears certain hedge funds, after some of the most volatile markets in years, have not been quick to post their performance, while others, such as Roy Niederhoffer, have enjoyed the recent market volatility. Hedge funds: Greenlight and Glenview hedge funds slow to…
    Tags: percent, year, market, hedge, funds, trading