AUD Hedgers driving currency prices?

Discussion in 'Forex' started by trading1, Nov 10, 2010.

  1. To what extent is it likely that hedging operations are driving currency prices. For example, with the AUD the massive mining companies must be hedging the AUD (they certainly aren’t complaining much about the rising price), that in turn is perhaps creating buying pressure for the AUD? A lot of speculative trading comes and goes and probably balances itself out to have a reduced affect but the hedging would be a sustained one way flow of buying.