FX Market Update - August 2019
News & Insights

<p>Key Insights:</p>
<ul>
<li>AUD index against major trading partners shows a clear negative trend for currency since its peak in 2012. </li>
<li>Over the past 12 months, AUD has weakened against most major currencies, the largest weakness was noted against the Yen and Swiss Franc. </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 – growth and defensive. </li>
<li>The weakness of the AUD has been fundamentally driven – while the commodity prices have been improving, the rate differential between Australian and 2-year is at 20-year lows. This has been underpinned by weaker GDP growth, lower inflation and dovish central bank. </li>
<li>The outlook for AUD is positive against Swiss Franc and Euro but negative against the Pound, USD and Yen.</li>
</ul>
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