Leveraged funds scale back long CAD positions and turn neutral on AUD - Nomura

The Global FX Strategy Team at Nomura reports on the latest Leveraged Funds’ / Asset Managers’ balance breakdown, noting that leveraged funds scale back long CAD positions and turn neutral on AUD. 

Key Quotes

• CAD: In the week ended 26 December, Leveraged Funds scaled back long CAD positions from 42% net longs to 15%, the lowest level since July 2017. Net long positioning reached a peak of 71% in mid-October. Asset managers increased net longs to 57% from 54%.

• AUD: Leveraged Funds are now almost neutrally positioned on AUD, scaling back netlongs to just 3% from 17%, previously. Leveraged funds had reached 80% net-long AUD at end-September. Asset managers remain heavily net short at -72%. 

• GBP: Leveraged funds reduced GBP longs, from 29% net longs (highest over last year) to 23%. Asset managers remain net short GBP, but continued to gradually reduce these positions from 41% to 39%.

JPY: Asset managers increased net JPY shorts to -22% of outstanding contracts, from -16%. Nonetheless, asset managers net-short positioning remains close to the highest levels seen over the last year. Leveraged funds reduced net shorts to 42% from 45%.