eFXnews | Sep 14, 2015 04:50AM ET
The AUD has sailed through levels, which would be considered fair relative to domestic economic fundamentals and has begun to provide a stimulatory tailwind to the non-mining economy, notes Australia and New Zealand Banking Group (ASX:ANZ).
"The AUD is now overshooting fair value and is moving in to territory that is outright stimulatory for the non-mining economy, and is also getting increasingly close to levels at which it is also stimulatory, rather than a shock absorber, to the mining sector. Our current estimate of fair value is USD0.72," ANZ clarifies.
"All of the above analysis points in one direction and raises the risk that until we can confidently forecast (and likely have to observe) a more robust recovery both in Australia and in Asia further overshoot is likely... We retain our forecast of a trough in the AUD at USD0.67, however believe that the risks of further downside remain significant," ANZ concludes.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.