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    Australian CFTC AUD net positions dropped from -$21.6K to -$212K

    by VT Markets
    /
    Jan 6, 2026
    The net positions for the Australian Dollar (AUD) have dropped significantly. The latest data from the CFTC shows a change from a previous net position of $-21.6K to a current $-212K. This decline represents a major shift in how traders view the AUD. Market participants may closely examine this data as they navigate market conditions.

    Significant Negative Shift

    Recent data indicates a large rise in bearish bets against the Australian dollar. Speculators have sharply increased their net short positions, indicating a strong expectation that the currency’s value will decrease. This is one of the most significant negative changes we’ve seen in months. This bearish outlook is supported by the interest rate environment, a key factor we’ve monitored since late 2025. The U.S. Federal Reserve has kept rates steady at 4.75%, while U.S. unemployment remains stable at 4.1%. In contrast, the Reserve Bank of Australia is facing different challenges. Australian inflation decreased to 3.4% in the last quarter of 2025, putting pressure on the RBA to possibly reduce rates sooner than the Federal Reserve. Additionally, there is weakness in commodity markets, which are vital for the AUD. Iron ore prices have recently fallen below $105 per tonne, down from over $140 in early 2025. This decline is mainly due to disappointing manufacturing output from China, Australia’s largest trading partner.

    Derivative Strategies

    With negative sentiment rising, derivative traders might want to consider strategies that benefit from a falling AUD/USD exchange rate. Buying put options provides a straightforward way to profit from a decline while clearly defining risk to the premium paid. Establishing short positions in AUD futures contracts could also be a strategy, anticipating a break below key support levels from the last quarter. Create your live VT Markets account and start trading now.

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