AUD: Australian pension funds rush to shield portfolios from Iran war currency shock

Australian corporates and superannuation funds have sharply increased FX hedging amid Iran-war driven volatility, per CommBank’s inaugural FX Barometer. Importers hedge ~80% of exposures and exporters that hedge cover ~86%; large corporates nearly fully hedge while smaller firms lag. Super funds show high coverage for foreign property/infrastructure but low hedging in private equity and hedge funds; nearly 90% plan to raise hedge ratios across asset classes and over 80% plan to boost foreign currency exposure (avg +13.6%) in the next three months. The shift to heavier hedging and the survey’s AUD year‑end forecasts (US$0.71–0.72) signal heightened defensive positioning that could damp AUD volatility and increase demand for USD hedges.