[Asset Managers Turn Long on Australian Dollar for First Time Since Late 2024] Institutional investors have turned long on the Australian dollar for the first time in over a year, influenced by both the Reserve Bank of Australia's hawkish policy and a weaker US dollar. According to data from the US Commodity Futures Trading Commission for the week ending February 17, asset managers, who had held net short positions since October 2024, are now bullish, aligning themselves with their leveraged fund counterparts. Leveraged funds had already switched to long positions as early as December last year. Peter Dragicevich, currency strategist at Corpay Inc., wrote, "We believe the Australian dollar is currently experiencing higher volatility than its average over the past few years. Rising interest rates and a shift in interest rate differentials in favor of Australia could also limit the magnitude and duration of any pullback in the Australian dollar."
