A piece on Bloomberg looking at the rebound in commodity prices and the relative underperformance of the Australian dollar
- Since the end of June, JPMorgan Chase & Co.'s real effective exchange rate for the Aussie has risen 4 percent, while Westpac Banking Corp.'s Australian export commodity index has soared by 43 percent. The mismatch is another reason why central bank Governor Philip Lowe is comfortable sitting on his hands: he's getting an easing of financial conditions without having to touch the monetary policy lever.
That'll provide and underpinning for the AUD as the USD strengthens.
