Yen longs heavily extended, AUD longs pared – Deutsche Bank

Nicholas Weng, Strategist at Deutsche Bank, lists down the CORAX Positioning Data from 03-May-2016.

Key Quotes

“Yen longs heavily extended after BoJ inaction, AUD longs pared. Stubborn yen bulls were rewarded after the BoJ held off additional easing measures. Investors held on to longs ahead of the rate decision, and increased their exposure rather than taking profit after the event. The golden week holidays and the latest US Treasury report raising the bar for currency intervention may have further emboldened yen bulls.

AUD longs were heavily pared immediately after the inflation print, by contrast there was little position change after the RBA cut last night. USD longs and Euro shorts were modestly trimmed over the week while positioning in Scandies remained unchanged. In GBP, investors seemed content to follow the trend rather than sell rallies as seen in March. NZD was net bought after RBNZ remained on hold amid speculation of further easing.

ZAR and MXN shorts pared for another week. ZAR and MXN shorts were pared for another week as investors continue to buy into carry. In TRY, investors took partial profit from longs over the week.”