RBA’s Edwards comments, AUD is ‘a bit too high’ - BNPP

Research Team at BNP Paribas, notes that the RBA Governing Board member Edwards commented in a Wall Street Journal article overnight that he viewed that the AUD remained ‘a but too high’ and went as far as commenting that a level of 0.65 AUDUSD would be more appropriate.

Key Quotes

“BNP Paribas CLEER™, our macro-based fair-value model, agrees with this assessment – it suggests that AUDUSD has not responded to the ongoing decline in commodity prices and that it appears overvalued vs its CLEER of 0.64. Our short-term fair-value model, BNP Paribas STEER™, also indicates that AUDUSD is over-valued on a multi-week horizon and signals a bearish trading signal targeting 0.6997.”