[AndrewWoo]

For private and official investors who are overweight USD relative to their notional benchmarks, commodity currencies have the advantage of buying insurance against their biggest risk, a precipitous USD decline. So while GBP and EUR have the advantage of being extremely liquid and deep, from an insurance perspective, if you are selling USD and taking the risk that your selling will move the market, it is more advantageous to buy a currency with a high beta versus USD rather than a low one. Otherwise your market impact could more than offset any effort at unwinding excess USD longs.

AUD still undervalued?
With AUD trading at its highs of the year and its highest level since August 2008, market participants will be questioning whether the currency has moved too far in the short term.