A look at the impact of the taper on the AUD and today’s RBA meeting from Bloomberg:
- The Aussie is down 7.1% in the past three months, the most among Group of 10 currencies
- A 10%drop boosts gross domestic product by 0.5 to 1 % point over two years, the Reserve Bank of Australia estimates
- The currency “is close to the level consistent with its medium-term determinants,” the RBA said in a December briefing document released Jan. 28…
- “Even though the strength of the A$ can be largely explained by the model, it may still be considered to be ‘overvalued’ to the extent that it is judged to be too high to achieve desired domestic economic outcomes.”
