CFTC data as of 19 May displays a broadly unchanged picture from the past few weeks. Investors positioning in the G10 sphere are still vastly in favour of defensive/low-yielding currencies while pro-cyclical currencies remain in the deeply oversold territory. {image} The antipodeans are the most oversold currencies, and their net shorts may increase (those of AUD in particular) more as the Australia-China and the US-China diplomatic spats intensify. As discussed in “AUD: Cast-iron sentiment”, the good commodity backdrop has provided AUD with some shelter to the initial skirmishes between Australia and China. As the ... (full story)