From the WSJ:
U.S. hedge fund managers are lining up to sell the already battered Australian dollar, BlackRock Managing Director Michael Trudel said.
Mr. Trudel told The Wall Street Journal that “there are some pretty prominent hedge fund managers back in the states that have been vocal on getting short the Australian dollar.”
“We’ve rarely spoken to a person–either here or among strategists back in New York–that are long the Australian dollar,” said Mr. Trudel, who helps manage more than US$90 billion. New York-based BlackRock had US$3.94 trillion in assets under management as of March 31.
Mr. Trudel said slowing economic growth in Australia and the likelihood of resulting interest-rate cuts will keep pressure on the currency, although he said BlackRock doesn’t have a downside target. Another rate cut by the Reserve Bank of Australia “is in the cards,” he said.
This is the sort of story that suggests that the current move is exhausted. Especially with the taper suddenly off and the USD tanking. Pacific peso was up nearly 2 cents overnight:
Not that I think any stability will last long with the RBA behind the curve.
