(Bloomberg) -- Speculative investors ratcheted up bearish Australian dollar wagers to the most on record after jitters around China hammered risk sentiment. 

An aggregate gauge of investor positioning in the Aussie — net non-commercial futures and options positions — showed the most selling pressure since at least 1995, according to Commodity Futures Trading Commission data for the week to March 19.

The bets come amid worsening sentiment toward China as investors question whether policymakers are doing enough to boost its fragile economy. Beijing further dented optimism on Friday after loosening its vise-like grip on the yuan. This permitted a slide that pulled down Asian peers, including the Aussie, and fanned jitters on the lengths authorities may permit the currency to weaken. The Aussie is considered a proxy for China sentiment given the two nations’ close trade links.

“Under ordinary circumstances, we would expect to see Australia’s dollar outperforming,” Goldman Sachs Group Inc. strategists including Kamakshya Trivedi wrote in a note. “But with its usual beta to equities unusually depressed and China worries still top of mind with investors, it may take some time before the Australian dollar starts to react in line with historical performance.”

©2024 Bloomberg L.P.