(17 July 2026 – Australia) CommBank’s latest FX Barometer shows money managers and corporates are stepping up currency risk management as foreign exposures grow, with both groups prioritising risk reduction over currency timing.
Australian money managers and corporates are increasing their focus on foreign exchange risk management as offshore exposures grow, according to the latest CommBank FX Barometer.
The quarterly analysis based on direct interviews with 1,000 Australia-based enterprises that actively use the Australian dollar in their operations reveals money managers are becoming more active in managing FX risk as foreign exposure increases, while corporates have also become more active in managing currency risk since the April survey.
The primary research conducted by East & Partners found the majority of money managers expect to increase their exposure to foreign currency assets over the next quarter. Almost 9 in 10 super funds, three-quarters of investment managers and just 1 in 2 insurers expect to increase their FX exposure.
“Foreign exposure is highest among hedge fund and private equity investment, reflecting the global nature of those opportunity sets. Money managers hedge their foreign currency exposure to protect asset values and income from fluctuations in the Australian dollar” commented CommBank Head of Foreign Exchange, International & Geoeconomics, Joseph Capurso.
Australian corporates have become more active in managing FX risk, with the proportion of importers and exporters hedging and the average share of exposures hedged both increasing since April. Corporates have largely maintained their end-December 2026 forecast for AUD/USD at 0.72, but now expect the Australian dollar to weaken over the first half of 2027 and end June 2027 near 0.68.
“Corporate hedging activity has picked up since the April survey, reflecting a more proactive approach to managing FX risk. Short-dated hedging remains dominant across corporates, particularly among corporates with turnover below $A725 million. Around half of importers and businesses engaged in both importing and exporting hedge their FX exposures for less than three months” stated CBA Economist and Currency Strategist, Carol Kong.
