7 Apr 2014
AUD sees significant short covering - TDS
FXStreet (Bali) - Changes in IMM positioning in the major currencies were moderate in the week through April 1st, except for MXN, JPY, and AUD, notes Shaun Osborne, Chief FX Strategist at TD Securities.
Key Quotes
"The former registered a significant increase in net long contracts, which led to a reversal from a net short position of –1.6k to a net long of 21.8k contracts. Remember MXN boasted a +151k net long roughly a year ago."
"JPY registered the second largest move, with and increase in net shorts of 19.8k contracts to –88.6k. Although sizeable, this is roughly one-third below the net JPY shorts we saw in late-December."
"In turn, AUD saw significant short covering, extending the trend observed in the last ten weeks. Net AUD shorts ended April 1st at –4.9k contracts, which compares to –20.5k on March 25th."
"EUR net longs dropped by 6.4k contracts, with CTAs and speculative investors reducing outstanding net long exposure to +33.2k. "
"CAD saw an increase in net shorts of 3.8k contracts to –37.0k. Meanwhile, GBP experienced a 3.8k increase in net longs to a total of +33.6k contracts."
"Speculative accounts also boosted net long NZD positioning in the week—driving net longs up by 0.3k to +18.5k contracts."
"Contrarily, investors reduced net CHF longs by a small 0.6k to a total of +14.2k contracts."
"As a result of all these changes, the implied aggregate USD position held by the market reversed from a net short of USD 0.2bn to a net long of USD 0.8bn, reflecting a relatively neutral stance on the greenback."
Key Quotes
"The former registered a significant increase in net long contracts, which led to a reversal from a net short position of –1.6k to a net long of 21.8k contracts. Remember MXN boasted a +151k net long roughly a year ago."
"JPY registered the second largest move, with and increase in net shorts of 19.8k contracts to –88.6k. Although sizeable, this is roughly one-third below the net JPY shorts we saw in late-December."
"In turn, AUD saw significant short covering, extending the trend observed in the last ten weeks. Net AUD shorts ended April 1st at –4.9k contracts, which compares to –20.5k on March 25th."
"EUR net longs dropped by 6.4k contracts, with CTAs and speculative investors reducing outstanding net long exposure to +33.2k. "
"CAD saw an increase in net shorts of 3.8k contracts to –37.0k. Meanwhile, GBP experienced a 3.8k increase in net longs to a total of +33.6k contracts."
"Speculative accounts also boosted net long NZD positioning in the week—driving net longs up by 0.3k to +18.5k contracts."
"Contrarily, investors reduced net CHF longs by a small 0.6k to a total of +14.2k contracts."
"As a result of all these changes, the implied aggregate USD position held by the market reversed from a net short of USD 0.2bn to a net long of USD 0.8bn, reflecting a relatively neutral stance on the greenback."