Westpac on the Australia greenback: "The alternate fee and the massive pivot"

An prolonged notice from Luci Ellis, Chief Economist Westpac Group, Westpac.

In short:

• A depreciating alternate fee typically will get interpreted as a ‘vote of no confidence’ in that financial system or foreign money. In reality, it’s typically a needed and welcome shock absorber.
• future progress in export volumes is usually going to have to come back from someplace aside from the present high 4 exports.
• Australia goes to wish to pivot.
• The excellent news is that historical past exhibits that it may, and the behaviour of the alternate fee will assist it navigate that interval of change.

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Whereas the notice would not present a forecast for the AUD it reads to me like WPAC is anticipating the foreign money to be decrease for longer.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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