Minack: Foreign central banks adding 15 cents to Australian dollar

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From the AFR:

Foreign central bank appetite could be adding up to US15¢ to the value of the Australian dollar according to one strategist, as the market awaits commentary from the Reserve Bank of Australia on the high dollar following its rates meeting on Tuesday.

Morgan Stanley strategist Gerard Minack wrote in a note to clients this morning that offshore central bank inflows could be pushing the Australian dollar by between US10¢ and US15¢ beyond its fundamental value.

The McKibbin proposal needs a national debate. Right now we are the new Switzerland and need policies to cope with it.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.