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30 Oct 2015
Exchange rate about where the RBA wants it - Socgen
FXStreet (Guatemala) - Klaus Baader, analyst at Societe Generale explained that over the three months since the August forecasting round, the exchange rate has continued to ease, albeit moderately, owing to a small rebound in October which partly reversed the sizable drop of September.
Key Quotes:
"Still, the Governor’s comment from mid-September that it was hard to say that the currency is misaligned with fundamentals in all likelihood remains valid."
"That said, aggressive market pricing for a near-term rate cut in Australia almost certainly contributed to the renewed slide in recent days, and this is a risk to the prediction that the RBA will hold interest rates at the current level."
Key Quotes:
"Still, the Governor’s comment from mid-September that it was hard to say that the currency is misaligned with fundamentals in all likelihood remains valid."
"That said, aggressive market pricing for a near-term rate cut in Australia almost certainly contributed to the renewed slide in recent days, and this is a risk to the prediction that the RBA will hold interest rates at the current level."