Weekend Economist: Currency cocoon

Stability is sheltering the Australian dollar carry trades of the hedge funds. The end of QE3 could shake that protection.

Over the last six months the Australian dollar had traded in a very narrow $US0.925 to $US0.945 range. It currently stands near the middle of that range. This is despite ongoing attempts from the Reserve Bank governor to “talk down” the Australian dollar. In fact, he materially intensified his commentary on the Australian dollar in his statement following the September 2 board meeting by moving from describing the local currency as “high by historical standards” to a much more sophisticated, “remains above most estimates of its fundamental value”, a follow on from some remarks he made in Hobart previously.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles