RBA Deputy Lowe's comments yesterday about a high threshold for currency intervention and the fact the AUD/USD is 10-15% overvalued tells me they wont be...

RBA Deputy Lowe's comments yesterday about a high threshold for currency intervention and the fact the AUD/USD is 10-15% overvalued tells me they wont be aggressively selling the Aussie any time soon. If it was still at or above parity maybe but not from these levels. I think the sell off is a little overdone for now and so could be a good short term buying opportunity for AUD/USD ahead of 90 cents into a possible no taper in December play. AUD/GBP however presents a greater opportunity for rewards from the short side for the medium to longer term i.e more downside in AUD/GBP than AUD/USD at the moment (VIEW LINK)


Jim Vrondas
Chief Currency & Payment Strategist – Asia Pacific
OzForex

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