Free Trial
EURUSD TECHS

Shallow Correction

SCHATZ TECHS

(H3) Support Stays Intact

US TSYS

Marginally Cheaper In Asia

EQUITIES

Tech Headwinds Limit Gains

BOBL TECHS

(H3) Watching Support

BUND TECHS

(H3) Has Pierced A Key Short-Term Support

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

NAB: AUD/USD Continues Run Below “Fair Value”

AUD

NAB note that “October was a risk-positive month, but somewhat unusually AUD/USD failed to exhibit its traditional pro-risk attributes. Spot was little changed while our AUD/USD model estimate gained over half a cent with the model’s risk factor the largest positive contributor. Commodities also added to the model estimate with gains in oil more than offsetting weakness in gold and metal prices. In contrast, the model’s rates factor was a minor detraction. Extreme AUD/USD undervaluation relative to our model estimate has been a feature since early June this year. At the end of October AUD/USD was just over 4 cents undervalued, well outside the model’s fair value band of +2.5% to -3.5%.”

112 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

NAB note that “October was a risk-positive month, but somewhat unusually AUD/USD failed to exhibit its traditional pro-risk attributes. Spot was little changed while our AUD/USD model estimate gained over half a cent with the model’s risk factor the largest positive contributor. Commodities also added to the model estimate with gains in oil more than offsetting weakness in gold and metal prices. In contrast, the model’s rates factor was a minor detraction. Extreme AUD/USD undervaluation relative to our model estimate has been a feature since early June this year. At the end of October AUD/USD was just over 4 cents undervalued, well outside the model’s fair value band of +2.5% to -3.5%.”