AUD Shorts Reach New Highs as Currency Loses Momentum

Rabobank notes that speculative shorts on the Australian Dollar have increased for a second consecutive week, reaching their highest level since December 2025. The AUD has been one of the top performers among G10 currencies year-to-date, but its gains against the US Dollar are fading.

The AUD's momentum is losing steam as it has weakened by 3.23% against the USD this month, falling back to 0.70 from recent highs near 0.72. This decline indicates that investors are taking a more cautious stance on the currency.