Asset managers have ramped up their bearish bets against the Australian dollar, reaching an all-time high in the week ending October 20. The surge in short positions reflects growing unease among investors, driven by escalating tensions in the Middle East and concerns over the artificial intelligence trade. These factors have triggered a broad retreat from risk-sensitive assets, including the Australian dollar.
The latest data shows that money managers increased their net bearish wagers by 12,901 contracts, bringing the total to 129,065. This marks the seventh straight week of rising short positions on the currency. The shift aligns with a broader market trend, as global equities have declined and demand for safe-haven assets has boosted the US dollar.