AUD still “adjusting” – ANZ

By FXStreet FXStreet (Delhi) – Daniel Been, Research Analyst at ANZ, suggests that the RBA meets tomorrow and he sees a risk that it shifts its language on the AUD once again with iron ore prices down 20% since September and the AUD broadly unchanged, it’s not clear that the AUD is still “adjusting to the significant declines in key commodity prices.”

Key Quotes

“The RBA meets tomorrow for the final time in 2015. While the data pulse over the last month leaves us confident that there will be little change in its tone around the domestic economy, or in its overall bias, there is some chance that the RBA shifts its language on the AUD once again. Statements since August have characterised the AUD with “The Australian dollar is adjusting to the significant declines in key commodity prices.”

“This statement shifted in August, where previously the bank had said “The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.”

“With iron ore prices having fallen close to 20% over the past two months, and the …read more

Source:: FX Street