Highlights From Citi Flows & Positioning Report

The latest Citi flows & positioning report hit on Monday, flagging the following key points:

• USD: Short positioning increased over the last week. Activity from institutional investors was light overall, while retail were large sellers. There have been consistent steady net outflows from Citi's real money clients which combined with retail investors pushes USD to further net short.
• JPY: Despite the large selloff in US fixed income last week, USDJPY was barely changed. This is likely due to inflows into JPY from investors in aggregate, with long positioning increasing markedly over the last week. Buying was predominantly driven by real money and retail investors.
• NZD: Positioning moved into long territory from neutral over the last week. Buying was broad based, with leveraged, real money, and retail investors all net buyers. With recent inflows, there is a risk that, in reaction to recent currency strength, the RBNZ reiterates the potential for foreign bond buying when it meets tomorrow - which could potentially push the NZD down over the event as recent longs are unwound.