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NAB AUD/USD Fair Value Model Moves Higher In Dec

AUD

NAB note that “while December was a relatively subdued month for the AUD/USD with spot little changed overall, from a valuation perspective it was a big one, our fair value model estimate climbing over 3 cents. Gains in the model’s estimate came from all three of its factors. AU/U.S. rate spreads contributed about half of the gains (circa 1.5c), commodities added around half a cent with metals and gold offsetting softer oil prices. And then the improvement in risk appetite added another cent to the estimate’s gains in December with a decline in FX volatility the major influence.” Their short-term fair valuation model for AUD/USD now sits at $0.7370.

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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