Forex Flash: AUD benefits from upbeat mining data - BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Australian Dollar also benefitted from the release of more upbeat than expected capital expenditure expectations from the Australian mining sector, pointing to an 11% rise YoY in 2013/14.

He writes, “The RBA had been expecting that mining investment would have began to subtract from growth by then which may allow the RBA more time before delivering another rate cut. It has also been reported overnight that recent RBA documents revealed that their internal and IMF models suggest that the Australian dollar is overvalued by around 4-15%, with up to 34 central banks holding the Australian dollar as part of their foreign exchange reserves.”