From Forexlive:
Australian PM Abbott speaking in Beijing:
- When the AUD was at US$1.05 it “did impose certain strains on our economy”
- “The levels that we’ve seen it at in recent months are probably more comfortable for more people”
- “But nevertheless it is a market-driven currency. Let’s see where the market takes it.”
Here’s a pop quiz:
- Q. What’s a market made up of?
- A. People (and algos).
People in markets are driven by fear and greed. If you want your currency to fall do you tell those people that it’s at a comfortable level or do put the fear of losses into them?
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Is it really too much to ask that “Team Australia” jawbone the currency as one?