(Bloomberg) -- Deepening recession fears have spurred fund managers to turn the most bearish on Australia’s dollar since March.
Hedge funds and their traditional asset manager peers ratcheted up short positions on the risk-sensitive currency to 61,405 contracts, Commodity Futures Trading Commission data compiled by Bloomberg show. They’ve collectively maintained short bets on the Aussie for 15-straight weeks, helping to drive the 4.6% loss in the currency this year.
“A global economic slowdown, Fed still on hiking mode and heightened geopolitical tensions -- Ukraine and now Taiwan -- is not an environment for the Aussie to perform, even with the domestic economic performance and the RBA hiking,” said Rodrigo Catril, strategist at National Australia Bank Ltd. in Sydney.
The currency was trading at 0.3% higher at 69.28 US cents at 1:43 p.m. in Sydney.
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