The Australian dollar is the most overvalued currency in the world, but there is little will to intervene, according to a global valuation. Using data from the OECD's measure of purchasing power parity, The Economist's Big Mac Index and the Current Real Effective Exchange Rate (REER) as compared to its five-year average, HSBC found that Australia had the world's most overvalued currency, while having policymakers who were among the least active in the so-called ''currency war''. We’ll be out in the war zone with a peashooter. The Australian dollar is almost 12 per cent overvalued under REER, and overvalued by 12.2 ... (full story)