Currency Speculators drop Australian Dollar bets for 9th time in 10 weeks

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday September 5th and shows a quick view of how large market participants (for-profit speculators and commercial traders) were positioned in the futures markets. All currency positions are in direct relation to the US dollar where, for example, a bet for the euro is a bet that the euro will rise versus the dollar while a bet against the euro will be a bet that the euro will decline versus the dollar.

Weekly Speculator Changes led by US Dollar Index & Bitcoin

The COT currency market speculator bets were lower this week as three out of the eleven currency markets we cover had higher positioning while the other eight markets had lower speculator contracts.

Leading the gains for the currency markets was the Japanese Yen (1,337 contracts) with the US Dollar Index (536 contracts) and Bitcoin (532 contracts) also showing positive weeks.

The currencies seeing declines in speculator bets on the week were the Australian Dollar (-13,352 contracts), EuroFX (-10,448 contracts), Canadian Dollar (-9,202 contracts), the Mexican Peso (-6,342 contracts), the New Zealand Dollar (-3,624 contracts), Brazilian Real (-2,655 contracts), the British Pound (-2,017 contracts) and the Swiss Franc (-807 contracts) also registering lower bets on the week.

Large Currency Speculators drop Australian Dollar bets for 9th time in 10 weeks

Highlighting the COT currency’s data this week is the continued weakness of the speculator’s positioning for the Australian dollar. Large speculative currency positions for the Aussie dropped this week by over -13,000 net contracts and fell for the fourth consecutive week as well as for the ninth time out of the past ten weeks.

The AUD positioning has now shed a total of -40,345 contracts over these past four weeks and this has brought the overall net speculator standing (currently at -83,352 contracts) to the lowest level in the past eighty weeks, dating back to February 2nd of 2022 when the net position was -84,080 contracts. The 3-Year Strength Index is showing a 7.4 percent score for the AUD, marking an extreme bearish reading for speculators this week.

The Australian dollar has been in a downtrend over the course in 2023 after opening the year at approximately the 0.6815 exchange rate and this week touched the lowest level since November of 2022 at a low of 0.6360.

Hurting the AUD’s exchange against the US Dollar is the interest rate disparity and the possible future divergence of the central banks with the US Federal Reserve possibly continuing to raise its benchmark rate (currently at 5.25-5.50%) while the Reserve Bank of Australia is assumed to be finished boosting its rate (currently at 4.10%).

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Strength Scores led by Bitcoin & British Pound

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that the Bitcoin (100 percent) and the British Pound (88 percent) lead the currency markets this week. The Mexican Peso (80 percent), EuroFX (77 percent) and the Brazilian Real (54 percent) come in as the next highest in the weekly strength scores.

On the downside, the Australian Dollar (7 percent), the Japanese Yen (12 percent) and the New Zealand Dollar (16 percent) come in at the lowest strength levels currently and are in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
US Dollar Index (30.5 percent) vs US Dollar Index previous week (29.6 percent)
EuroFX (77.1 percent) vs EuroFX previous week (81.5 percent)
British Pound Sterling (88.0 percent) vs British Pound Sterling previous week (89.4 percent)
Japanese Yen (12.3 percent) vs Japanese Yen previous week (11.5 percent)
Swiss Franc (41.9 percent) vs Swiss Franc previous week (44.1 percent)
Canadian Dollar (31.3 percent) vs Canadian Dollar previous week (39.8 percent)
Australian Dollar (7.4 percent) vs Australian Dollar previous week (19.8 percent)
New Zealand Dollar (15.6 percent) vs New Zealand Dollar previous week (25.5 percent)
Mexican Peso (80.3 percent) vs Mexican Peso previous week (84.2 percent)
Brazilian Real (53.5 percent) vs Brazilian Real previous week (56.9 percent)
Bitcoin (100.0 percent) vs Bitcoin previous week (91.8 percent)

 

Bitcoin & Swiss Franc top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that the Bitcoin (42 percent) and the Swiss Franc (8 percent) lead the past six weeks trends for the currencies.

The New Zealand Dollar (-35 percent) leads the downside trend scores currently with the Australian Dollar (-30 percent), the Canadian Dollar (-28 percent) and the Brazilian Real (-23 percent) following next with lower trend scores.

Strength Trend Statistics:
US Dollar Index (-4.5 percent) vs US Dollar Index previous week (-13.7 percent)
EuroFX (-17.2 percent) vs EuroFX previous week (-13.5 percent)
British Pound Sterling (-8.8 percent) vs British Pound Sterling previous week (-10.6 percent)
Japanese Yen (-11.5 percent) vs Japanese Yen previous week (-4.9 percent)
Swiss Franc (8.5 percent) vs Swiss Franc previous week (15.6 percent)
Canadian Dollar (-28.4 percent) vs Canadian Dollar previous week (-15.2 percent)
Australian Dollar (-30.0 percent) vs Australian Dollar previous week (-18.3 percent)
New Zealand Dollar (-35.4 percent) vs New Zealand Dollar previous week (-18.3 percent)
Mexican Peso (-12.4 percent) vs Mexican Peso previous week (-12.6 percent)
Brazilian Real (-22.9 percent) vs Brazilian Real previous week (-22.1 percent)
Bitcoin (41.6 percent) vs Bitcoin previous week (41.4 percent)

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Individual COT Forex Markets:

US Dollar Index Futures:

The US Dollar Index large speculator standing this week came in at a net position of 3,359 contracts in the data reported through Tuesday. This was a weekly increase of 536 contracts from the previous week which had a total of 2,823 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 30.5 percent. The commercials are Bullish with a score of 67.8 percent and the small traders (not shown in chart) are Bearish with a score of 25.6 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

US DOLLAR INDEX Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	62.6	20.4	12.5
– Percent of Open Interest Shorts:	53.4	34.0	8.0
– Net Position:	3,359	-5,005	1,646
– Gross Longs:	22,881	7,448	4,587
– Gross Shorts:	19,522	12,453	2,941
– Long to Short Ratio:	1.2 to 1	0.6 to 1	1.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	30.5	67.8	25.6
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-4.5	2.1	16.9

 

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Euro Currency Futures:

The Euro Currency large speculator standing this week came in at a net position of 136,231 contracts in the data reported through Tuesday. This was a weekly decline of -10,448 contracts from the previous week which had a total of 146,679 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 77.1 percent. The commercials are Bearish with a score of 23.7 percent and the small traders (not shown in chart) are Bearish with a score of 42.2 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: New Sell – Short Position.

EURO Currency Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	31.3	53.9	11.9
– Percent of Open Interest Shorts:	13.2	77.2	6.7
– Net Position:	136,231	-175,854	39,623
– Gross Longs:	235,732	406,485	90,003
– Gross Shorts:	99,501	582,339	50,380
– Long to Short Ratio:	2.4 to 1	0.7 to 1	1.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	77.1	23.7	42.2
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-17.2	21.8	-27.8

 

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British Pound Sterling Futures:

The British Pound Sterling large speculator standing this week came in at a net position of 46,384 contracts in the data reported through Tuesday. This was a weekly reduction of -2,017 contracts from the previous week which had a total of 48,401 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 88.0 percent. The commercials are Bearish-Extreme with a score of 17.7 percent and the small traders (not shown in chart) are Bullish with a score of 65.0 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

BRITISH POUND Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	41.1	37.3	15.0
– Percent of Open Interest Shorts:	20.5	59.5	13.4
– Net Position:	46,384	-49,955	3,571
– Gross Longs:	92,645	84,129	33,867
– Gross Shorts:	46,261	134,084	30,296
– Long to Short Ratio:	2.0 to 1	0.6 to 1	1.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	88.0	17.7	65.0
– Strength Index Reading (3 Year Range):	Bullish-Extreme	Bearish-Extreme	Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-8.8	15.1	-28.3

 

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Japanese Yen Futures:

The Japanese Yen large speculator standing this week came in at a net position of -97,136 contracts in the data reported through Tuesday. This was a weekly lift of 1,337 contracts from the previous week which had a total of -98,473 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 12.3 percent. The commercials are Bullish-Extreme with a score of 87.3 percent and the small traders (not shown in chart) are Bearish with a score of 35.7 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

JAPANESE YEN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	13.8	71.1	13.0
– Percent of Open Interest Shorts:	50.0	31.7	16.3
– Net Position:	-97,136	105,867	-8,731
– Gross Longs:	37,014	190,804	34,930
– Gross Shorts:	134,150	84,937	43,661
– Long to Short Ratio:	0.3 to 1	2.2 to 1	0.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	12.3	87.3	35.7
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-11.5	9.4	0.1

 

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Swiss Franc Futures:

The Swiss Franc large speculator standing this week came in at a net position of -5,325 contracts in the data reported through Tuesday. This was a weekly decrease of -807 contracts from the previous week which had a total of -4,518 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 41.9 percent. The commercials are Bullish with a score of 59.1 percent and the small traders (not shown in chart) are Bearish with a score of 41.9 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

SWISS FRANC Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	24.6	48.2	26.1
– Percent of Open Interest Shorts:	36.0	25.3	37.6
– Net Position:	-5,325	10,687	-5,362
– Gross Longs:	11,494	22,508	12,168
– Gross Shorts:	16,819	11,821	17,530
– Long to Short Ratio:	0.7 to 1	1.9 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	41.9	59.1	41.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	8.5	13.1	-37.3

 

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Canadian Dollar Futures:

The Canadian Dollar large speculator standing this week came in at a net position of -24,963 contracts in the data reported through Tuesday. This was a weekly fall of -9,202 contracts from the previous week which had a total of -15,761 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 31.3 percent. The commercials are Bullish with a score of 76.2 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 12.8 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: New Sell – Short Position.

CANADIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	24.1	54.8	17.1
– Percent of Open Interest Shorts:	37.3	39.3	19.5
– Net Position:	-24,963	29,461	-4,498
– Gross Longs:	45,761	103,959	32,462
– Gross Shorts:	70,724	74,498	36,960
– Long to Short Ratio:	0.6 to 1	1.4 to 1	0.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	31.3	76.2	12.8
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-28.4	35.1	-46.8

 

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Australian Dollar Futures:

The Australian Dollar large speculator standing this week came in at a net position of -83,537 contracts in the data reported through Tuesday. This was a weekly decline of -13,352 contracts from the previous week which had a total of -70,185 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 7.4 percent. The commercials are Bullish-Extreme with a score of 90.1 percent and the small traders (not shown in chart) are Bearish with a score of 23.6 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

AUSTRALIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	22.4	60.6	10.0
– Percent of Open Interest Shorts:	57.0	21.1	14.9
– Net Position:	-83,537	95,366	-11,829
– Gross Longs:	54,032	146,176	24,035
– Gross Shorts:	137,569	50,810	35,864
– Long to Short Ratio:	0.4 to 1	2.9 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	7.4	90.1	23.6
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-30.0	34.2	-32.8

 

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New Zealand Dollar Futures:

The New Zealand Dollar large speculator standing this week came in at a net position of -14,000 contracts in the data reported through Tuesday. This was a weekly fall of -3,624 contracts from the previous week which had a total of -10,376 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 15.6 percent. The commercials are Bullish-Extreme with a score of 87.2 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 10.8 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

NEW ZEALAND DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	29.8	60.3	5.2
– Percent of Open Interest Shorts:	54.6	29.7	11.0
– Net Position:	-14,000	17,291	-3,291
– Gross Longs:	16,847	34,068	2,947
– Gross Shorts:	30,847	16,777	6,238
– Long to Short Ratio:	0.5 to 1	2.0 to 1	0.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	15.6	87.2	10.8
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-35.4	40.7	-50.0

 

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Mexican Peso Futures:

The Mexican Peso large speculator standing this week came in at a net position of 67,521 contracts in the data reported through Tuesday. This was a weekly lowering of -6,342 contracts from the previous week which had a total of 73,863 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 80.3 percent. The commercials are Bearish-Extreme with a score of 18.6 percent and the small traders (not shown in chart) are Bearish with a score of 38.0 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

MEXICAN PESO Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	40.8	51.8	2.9
– Percent of Open Interest Shorts:	13.3	80.9	1.2
– Net Position:	67,521	-71,732	4,211
– Gross Longs:	100,298	127,372	7,084
– Gross Shorts:	32,777	199,104	2,873
– Long to Short Ratio:	3.1 to 1	0.6 to 1	2.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	80.3	18.6	38.0
– Strength Index Reading (3 Year Range):	Bullish-Extreme	Bearish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-12.4	12.1	-0.0

 

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Brazilian Real Futures:

The Brazilian Real large speculator standing this week came in at a net position of 13,933 contracts in the data reported through Tuesday. This was a weekly decrease of -2,655 contracts from the previous week which had a total of 16,588 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 53.5 percent. The commercials are Bearish with a score of 45.5 percent and the small traders (not shown in chart) are Bearish with a score of 49.7 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

BRAZIL REAL Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	58.7	30.6	9.5
– Percent of Open Interest Shorts:	18.8	75.3	4.8
– Net Position:	13,933	-15,569	1,636
– Gross Longs:	20,473	10,681	3,318
– Gross Shorts:	6,540	26,250	1,682
– Long to Short Ratio:	3.1 to 1	0.4 to 1	2.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	53.5	45.5	49.7
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-22.9	20.2	15.4

 

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Bitcoin Futures:

The Bitcoin large speculator standing this week came in at a net position of 2,039 contracts in the data reported through Tuesday. This was a weekly increase of 532 contracts from the previous week which had a total of 1,507 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 100.0 percent. The commercials are Bearish-Extreme with a score of 0.0 percent and the small traders (not shown in chart) are Bearish with a score of 24.2 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

BITCOIN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	79.8	0.7	8.1
– Percent of Open Interest Shorts:	66.1	17.6	4.8
– Net Position:	2,039	-2,534	495
– Gross Longs:	11,933	105	1,218
– Gross Shorts:	9,894	2,639	723
– Long to Short Ratio:	1.2 to 1	0.0 to 1	1.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	100.0	0.0	24.2
– Strength Index Reading (3 Year Range):	Bullish-Extreme	Bearish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	41.6	-64.3	-7.5

 

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Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.