Oil prices rebound, and hedge funds' short positions on the New Zealand dollar hit a record high

Odaily reports that hedge funds' short positions on the New Zealand dollar have reached a record high, as they believe the recent rebound in global oil prices may exacerbate domestic economic pressures in New Zealand. Data from the Commodity Futures Trading Commission (CFTC) shows that for the week ending July 14, leveraged funds' net short positions on the New Zealand dollar increased by 1,907 contracts to 29,582 contracts, the highest level since 2006. This bearish stance contrasts with the recent rebound of the New Zealand dollar, which was primarily driven by the hawkish policy stance of the Reserve Bank of New Zealand.

Additionally, investors' concerns about New Zealand's energy-importing economy are also reflected in the short bets, as heightened tensions between the US and Iran pushed crude oil prices back above $90 per barrel. The oil price shock could further deteriorate the country's trade balance, which barely avoided a trade deficit last month, while domestic consumer spending has declined. (Jin Shi)