Positioning is generally short the US dollar
Bank of America Global Research discusses Q3 flows in G10 and notes that at the end of Q3, the market remains short USD, but this position is less stretched than earlier in the year.
"Aggregate positioning in G10 FX remains on balance long risk, but it is now lighter than earlier in the year and in Q2," BofA notes.
"The most stretched positions include the hedge fund short AUDCHF and the real money long GBPUSD, EURUSD, AUDNZD and short USDNOK. In terms of Q3 flows, hedge fund GBP selling and real money NOK selling stand out,"BofA adds.
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The AUD/CHF chart looks like an nice inverted head-and-shoulders bottom:
