Australia’s central bank spent most of 2013 trying to drive down the Australian dollar, and a new chart from UBS perfectly illustrates why.
UBS economists Scott Haslem, George Tharenou and associate Delian Entchev compared historical NAB business survey results to the value of the AUD.
Improvements in NAB business conditions in late-1998, 2001, 2009 and 2014 coincided with falls in the AUD. From the UBS report:
Business conditions neared a three-year high in January, with NAB today putting the index at 4.4 points – the highest level since March 2011.
Ironically, the AUD jumped almost 0.4% after NAB’s data release and is now trading at about $US0.90.
Business Insider Emails & Alerts
Site highlights each day to your inbox.