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Hedge funds have turned positive on the AUD in recent weeks - Bloomberg

Hedge funds have turned bullish on the AUD in recent weeks despite the Australian currency's slide to 11-year lows on coronavirus scare. 

Key points

Hedge funds held a net long position in the Australian dollar of 4,044 contracts in the week ended Feb. 4, compared with net shorts of 36,264 at the end of last year, according to the latest data from the Commodity Futures Trading Commission. 

Aussie bulls think the resilient local economy will provide the Reserve Bank of Australia (RBA) room to keep rates on hold. That will allow the battered currency to regain some ground. 

AUD/USD fell to an 11-year low of 0.6662 on Feb. 7 before charting a three-day winning streak to 0.6750. 

The AUD picked up a bid after the RBA kept rates unchanged at a record low of 0.75% and suggested it may refrain from any further easing this year.

The rate cut expectations will be heavily influenced by the next batch of job data due this Thursday. Economists are predicting the unemployment rate crept up to 5.2% in January from 5.1% the previous month, according to a Bloomberg survey.

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