Leveraged funds reduced overall net long USD positioning - ANZ

FXStreet (Bali) - ANZ FX Strategists review the IMM positioning data for the week ending 10 March 2015, noting that leveraged funds reduced their overall net long USD positioning by USD0.6bn to USD35.4bn.

Key Quotes

"This is the fourth consecutive week that USD positioning was trimmed. This is surprising given the rise in the DXY index, especially following the strong payrolls data."

"The reduction in positioning could likely be profit taking as we head towards the FOMC meeting on 17-18 March."

"EUR was the only currency in the week to register net buying"

"Net short positioning in EUR reduced to USD18.0bn from USD20.0bn previously. The reduction in net short positioning in EUR comes as EUR/USD continues to make new lows."

"Despite net buying by leveraged funds, EUR/USD remained under downward pressure which suggests other outflows are dominating at present."

"Net selling on commodity currencies continued; with AUD registering the biggest net selling in the week. Commodity currencies registered net selling of USD0.8bn, with AUD registering USD0.5bn alone."

"The AUD selling was despite the RBA surprising the market by opting to leave the cash rate unchanged at 2.25% on 3 March. Post the cut-off date, there is likely to be further selling of commodity currencies as oil saw renewed selling pressures."

"Notably, net selling of GBP and JPY was registered for the first time in four weeks."

"Net selling in JPY and GBP of USD0.4bn and USD0.2bn respectively was registered for the first time in four weeks."

"This is the first time selling in JPY resumed post recent reports that BoJ policy makers are now of the view that further monetary easing to shore up inflation could be counterproductive."