The Australian dollar hasn't been this cheap since the GFC

From businessinsider.com.au

The Australian dollar hasn’t been this undervalued against the greenback since the depths of the global financial crisis, with fears over a potential escalation in the US-China trade conflict largely to blame. According to Joseph Capurso, Senior Currency Strategist at the Commonwealth Bank, the AUD/USD is now extremely cheap based on the bank’s fair value model. The model’s inputs include commodity prices priced in US dollars, the three-month interest rate spread between Australia and the US, and Australia’s current account deficit as a percent of Australian nominal GDP,” he says. “Using this equation, we ... (full story)