Australia's pension funds reconsider investment strategies due to US policy — Reuters

Australia's pension funds with a capital of 4.2 trillion Australian dollars (2.7 trillion US dollars) are reviewing some of their investment strategies amid uncertain trade policies of the United States. According to Reuters, there have been no significant changes so far, but experts note the recent weakening of traders' confidence in the dollar and American stocks.

The US-China tensions, with a sharp increase and subsequent decrease in mutual import duties, have heightened the volatility of both the American currency and the country's stock market. The dollar, usually seen as a safe-haven asset, has become a source of investor concern. Australia's pension funds are no exception, according to Citi's Troy Fraser.

The expert said that managers are currently reviewing their asset mix, hedging costs and evaluating the Australian dollar. A February Citi study estimated that a 5% shift in hedging could push Australia's national currency 11% higher against the American dollar.