Is the time right for the Aussie dollar to break out?

Policymakers are hoping the Australian dollar breaks free of its tight trading range, but the likelihood of change on the currency front depends on the fortunes of the greenback.

Despite a plethora of what would usually be market sensitive information, volatility in the Aussie dollar has decreased substantially in recent weeks. Central banks would normally be happy with such an outcome as increased uncertainty in financial markets can distort policy and make it difficult for targeted action to filter through to the real economy.

But sometimes, when it seems markets are conspiring against policymakers, an increase in volatility might be welcome -- so long as the markets shift asset values in the right direction investors can do the heavy lifting for authorities.

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