Tatiana Kashyrskaia
According to HSBC, one of the largest banking and financial services institutions in the world, the Australian Dollar is currently the world’s most overvalued major currency. The financial institution refers to the purchasing-power parity provided by the OECD, the index provided by The Economist (Big Mac) and some other major factors.
The bank also assumes that the Australian government is currently trying to reduce to a minimum their involvement in the so-called currency wars.
HSBC reports that the Australian Dollar is overvalued by as much as 60% if to consider its purchasing-power parity and by 12.2% according to the Big Mac index.
They say any further strengthening of the Aussie will only increase the imbalance. The experts assume that further currency wars will make Forex determine the price of assets in other financial markets. It is believed that the current situation with the national currency won’t let the Australian government raise interest rates in the near future.
Forex.
According to , the Australian Dollar keeps recovering after the recent downswing against the US Dollar. The experts report that AUDUSD is forming a big-scale downswing represented by wave А/В of level Weekly.
The closest level of support is 1.0224. The recent bearish trend will be completed as soon as the price consolidates above 1.0373 (as shown below).
Tatiana Kashyrskaia
