Sign Up Log in

    CFTC reports increase in Australia’s AUD NC net positions from -$212K to -$19K

    by VT Markets
    /
    Jan 10, 2026
    Net positions for the Australian Dollar (AUD) in the Commodity Futures Trading Commission (CFTC) reports have improved significantly. The positions have risen from $-212K to $-19K.

    Major Change in Sentiment

    There’s a big change in how traders feel about the Australian dollar. Many have quickly closed their bets against the currency, moving the net position from a very negative $-212K to a nearly neutral $-19K. This suggests that the strong downward trend we observed throughout much of 2025 is likely ending. This change comes as the Reserve Bank of Australia took a stronger stance in late 2025, hinting at possible interest rate hikes to combat inflation, which is currently around 3.5%. Additionally, prices for key exports like iron ore have surged over 12% in the last quarter, improving the economic outlook. These developments likely pushed many traders to change their negative positions. We should also consider the surprising strength in manufacturing data from China last month, which is good news for Australian trade. At the same time, the U.S. Federal Reserve is suggesting it may pause its rate hikes, which puts downward pressure on the U.S. dollar. A weaker dollar, as seen since late November 2025, usually supports the Australian dollar.

    Market Outlook

    In the upcoming weeks, we can expect that the rapid rise due to traders closing short positions may slow down. With speculative positioning now more balanced, the market will be on the lookout for new catalysts rather than just reacting to old bearish bets being closed. This might lead to a period of consolidation or more erratic price movements until a new trend starts. Traders should think about moving from basic short positions to strategies that fit this new environment. Buying call options during any significant dips could allow them to benefit from further gains with limited risk. Given the recent swift increase, we might also see higher option premiums, making strategies like selling cash-secured puts appealing for those who believe the currency has hit a low. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code