Aussie weakens after bonfire of the shorts

Monday, 30 March 2015

Not much need to do a long Aussie piece today but I’ll note quickly that last week’s Commitment of Trader’s report showed shorts still being squeezed in the currency:

Short positioning is now way back to Oct 2014 levels, offering plenty of room to shift the market down. The Battler was hit hard Friday night and is weakening again this morning against everything:

The reason why is obvious enough with only Brazil outdoing us to the downside: iron ore.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.