The Economist have updated their Big Mac PPP (purchasing-power parity) currency index, and it shows now the AUD is undervalued against the USD!
Note … The Economist article devotes quite a bit of space to explaining that the index “was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible”, and even more hedging. I guess the fun police took them to task and now they feel the need for a convoluted disclaimer?
Here’s the link to the article
And here’s a pic of the currency analyst (and friends) … mmm:
