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FOREX: A$ Longs Added Amid China Stimulus Hopes - CFTC Positioning

FOREX
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Friday's CFTC positioning update in FX provided mixed trends between leveraged funds and asset managers (for the week ending Oct 8). 

  • Outside of adding to CAD shorts, leveraged funds mostly sold USDs, see the table below. Indeed leveraged longs in AUD were at their highest since 2021. For yen it presents a similar backdrop in the leveraged space, while EUR net longs also returned.
  • In contrast, asset managers moved the opposite way for JPY, EUR and GBP, with longs against these currencies cut in the week ending Oct 8.
  • AUD stands out though in terms of fresh longs being added for asset managers. Indeed this segment was net long last week for the first time since early 2023.
  • This may have reflected hopes around China stimulus measures, which have been curtailed somewhat in the past week or so. The prior week's hawkish RBA backdrop, at least relative to other major cetnral banks may have also helped.  

Table 1: CFTC Positioning (Week Ending Oct 8 2024) 

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Friday's CFTC positioning update in FX provided mixed trends between leveraged funds and asset managers (for the week ending Oct 8). 

  • Outside of adding to CAD shorts, leveraged funds mostly sold USDs, see the table below. Indeed leveraged longs in AUD were at their highest since 2021. For yen it presents a similar backdrop in the leveraged space, while EUR net longs also returned.
  • In contrast, asset managers moved the opposite way for JPY, EUR and GBP, with longs against these currencies cut in the week ending Oct 8.
  • AUD stands out though in terms of fresh longs being added for asset managers. Indeed this segment was net long last week for the first time since early 2023.
  • This may have reflected hopes around China stimulus measures, which have been curtailed somewhat in the past week or so. The prior week's hawkish RBA backdrop, at least relative to other major cetnral banks may have also helped.  

Table 1: CFTC Positioning (Week Ending Oct 8 2024) 

Keep reading...Show less