AUD Is 10% to 15% Too High For RBA’s Comfort: HSBC

Following the Reserve Bank of Australia Governor’s indication last December that he would prefer AUD to be US75 cents, and the subsequent fall in commodity prices, HSBC suggests the AUD is probably still 10% to 15% above the RBA’s comfort level.

Paul Bloxham, Chief Economist at HSBC in the May 19, 2015 research report titled: “AUD is still too high for the RBA” notes Australia’s central bank is quietly fighting a currency war.

AUD to drop further despite its substantial fall recently

According to the HSBC analyst, in the heady days of the commodity prices boom back in 2011, one Aussie dollar was buying a whopping $1.10 US. However, since then, the AUD declined by almost 30%, to US80 cents today....