<p>Key Insights:</p> <ul> <li>AUD index against major trading partners shows a clear negative trend for currency since its peak in 2012.&nbsp;</li> <li>Over the past 12 months, AUD has weakened against most major currencies, the largest weakness was&nbsp;noted against the Yen and Swiss Franc.&nbsp;</li> <li>AUD weakness is also evident over the longer-term period of 3, 5 and 7 years which has benefited investors with unhedged offshore investments &ndash; growth and defensive.&nbsp;</li> <li>The weakness of the AUD has been fundamentally driven &ndash; while the commodity prices have been improving, the rate differential between Australian and 2-year is at 20-year lows. This has been underpinned&nbsp;by weaker GDP growth, lower inflation and dovish central bank.&nbsp;</li> <li>The outlook for AUD is positive against Swiss Franc and Euro but negative against the Pound, USD and&nbsp;Yen.</li> </ul> [embeddoc url="https://tat.capital/docs/uploads/2019/08/FX Market Update August 2019_Final_tat.pdf" viewer="google"]