With Blackrock, the world’s biggest money manager, reportedly leading the way, the entire funds management community seems to be taking a massive bet against the AUD in particular, and the NZD and CAD to a lesser extent.
On the other side is the professional trader community and there I am seeing an overwhelming bias towards buying the Commodity Currencies against the USD in particular but also against the EUR and the GBP.
So who will win? History would suggest that the traders will win once again. I wouldn’t count the legendary Soros et al exploits from the 80’s and 90’s as they were basically professional traders who managed money. The current crop of money managers are generally box tickers who follow each other around like a herd of sheep; one sells, all sell.
Not sure when, but I am backing the professionals and I expect the AUD to reverse fortune (sharply) sometime very soon.