The Australian dollar has surged nearly US3¢ in two weeks, reaching US63.45¢. It rose 1.3% last week and hit a two-month high of US63.67¢ on Friday, as weak US economic data fuelled expectations of further Federal Reserve rate cuts.
Meanwhile, real money accounts sharply reduced net short positions on the Aussie dollar, while hedge funds slightly increased their shorts, according to CFTC data for the week to 11 February. Asset managers cut net shorts to -29,100 contracts from -45,600, marking their least bearish stance since 10 December, said Sean Callow, senior FX analyst at InTouch Capital Markets.
