RBA’s Hauser: AUD has been a well-functioning ‘natural’ hedge for global risk assets

Forex Short News
  • Uncertainty obviously remains high
  • But predictions of the death of the US dollar and Australian hedging model appear somewhat premature
  • Pension funds will have to expand use of FX hedging over time to avoid hitting concentration limits
  • That especially as funds will have to invest more overseas given the lack of domestic assets

The headline remark is mainly to shore up some confidence in the currency. His speech mostly covers on pension/super funds, so there’s nothing notable on monetary policy.

This article was written by Justin Low at investinglive.com.