Comments from Australia analysts on the relative attractiveness (still) of Aussie debt highlight a frustration for the RBA ... flows into the AUD:
Greg Gibbs, head of Asia-Pacific markets strategy at RBS in Singapore (Gibbs knows his stuff):
- With yields falling in Europe and remaining very low in Japan, it puts upward pressure on other currencies
- This may frustrate the RBA that thinks the Australian dollar is too high relative to its commodity export prices, and to the underlying strength of an Australian economy that is working through a rapid downturn in mining investment.
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AUD since the March lows:
