The A$ is toying with top of my fair value model output – above 0.7950 its more than 1stdev above FV. RBA Debelle’s comments enough to cap?
I remain of the view that the rush to EUR will still push the Aussie above 80 cents short term. But it’s splitting hairs, really. EUR assets are already massively overbought:
The Aussie will retrace in due course.
Advertisement
————————————————————————————————
Disclosure: I’m the strategist for the Macrobusiness Fund which is currently overweight international stocks. We also run an international equities fund. Both of these will benefit from a falling Australian dollar and so I am definitely talking my own book.
Register your interest in the fund and we’ll be touch.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
