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Westpac Fair Value Model Hits 7-Year High

AUD

A Westpac analyst tweets: "Even with the sharp correction in iron ore late last week, the midpoint of the Westpac A$ fair value model jumps to a 7-Year high of $0.8320. Given the huge commodity price gains and lower market volatility, the A$ is seen as cheap below $0.8200. However, it's important to note that we are still not at maximum measures of deviation. The current 6.6% fair value deviation is still below 10-Year maximum suggesting that the A$ could deviate further from commodity prices in the near term given ongoing China trade tension."

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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