14.10.2014 - The RBA positively estimates the fall of the Australian dollar
In the Reserve Bank of Australia today have declared overvaluation of the national currency. Thus, from a fundamental point of view the price of the Australian dollar has to decline. The RBA noted that the decline from last week will be favorably displayed on the economy. We recall that from the beginning of September quotations fell by almost 6%, and reached minimum values since the beginning of the year. Among the reasons for the decline are called the strengthening of US dollar, drop in price of iron ore, as well as the decline in investment in the mining sector. It is necessary to pay special attention to the negative impact of slowing Chinese industry on the Australian dollar. We recommend holding short positions and maintain a medium-term negative outlook on the Australian currency.