Leveraged funds’ net long AUD fell, long JPY rose - Nomura

Nomura Global FX trategy Team notes that leveraged funds’ net long AUD positioning fell while net long JPY rose, based on the latest COT report.

Key Quotes - Leveraged funds / asset manager balance breakdown

• EUR: According to the IMM data for the week ended May 17, leveraged funds continued to decrease net short positions in EUR (18% of total leveraged funds’ contracts), which is the lowest net short position in the last year. On the other hand, asset managers’ net long positioning in EUR fell to 14% (vs. 15% in the previous week).

• JPY: Leveraged fund’s net long positions in JPY increased on the week (30% from 28% last week), after two consecutive weeks of retrenchment. Asset manager’s net short positions in JPY fell, marking the second consecutive week of unwinding in net shorts (10% from 12% last week).

• AUD: Net long positioning in AUD by leveraged funds continued to fall for the third consecutive week (to 46% of total leveraged funds’ contracts) while asset managers’ net long positioning fell for the second consecutive week to 67%.

• NZD: Leveraged funds reduced their net long NZD positions on the week, with the current proportion of net long at 42%, as of Tuesday this week. Last week saw the highest net long positioning in NZD in the last year (which was at 52%).