The RBA has released its September Commodity Index, disappointing traders with a 2.9% drop in Australian terms and 0.5% fall in SDR Terms (a nebulous IMF accounting measure for currencies).
There’s nothing like a bit of currency volatility to play with what you thought your income was going to be; the exchange rate has clearly knocked the AUD value of the index down this month.
The Aussie dollar is sitting up and through $US0.94 this afternoon, and despite Governor Glenn Stevens’ comment that “a lower level … would assist in rebalancing growth in the economy”, there’s little the RBA can do about the Aussie – short of cutting or talking the economy down – unless the US dollar falls out of bed.
It’s the challenge of apparent prosperity in a small open economy.
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