AUD: Plenty of fuel for further decline - Westpac

Sean Callow, Research Analyst at Westpac, notes that the CTFC’s Commitment of Traders report showed the expected further reduction in speculative AUD net long positions in the week to 10 May (i.e. including the response to the RBA’s SoMP.

Key Quotes

“Leveraged funds’ net longs fell from 53.4k contracts to 40.2k, still a substantial long position that suggests plenty of fuel for further AUD decline, should news flow warrant. Leveraged funds remained short EUR (-31k), long JPY (27k) while reducing GBP net shorts notably, from -22k to just -6k.”