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NAB: AUD Undervaluation Vs. USD Narrowed Slightly In July

AUD

NAB note that “the gap between AUD/USD spot and our fair value model estimate narrowed a little (0.62c) during July, although not enough to materially reduce the currency’s undervaluation. Our model estimate currently sees the AUD/USD’s fair value at $0.7450 vs spot just above $0.70. AU-US rate spreads contributed positively to the model’s estimate in July with a decline in the commodity factor an offsetting force. Risk appetite was a small positive contributor.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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