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Here is another more important factor in the AUD and the POG in AUD.
The RBA plays a dangerous game with its dollar bet
Reserve Bank of Australia Governor Glenn Stevens fronted the House of Representatives this morning to provide testimony on the state of the Australian economy. The RBA remains optimistic about the outlook but it’s playing a dangerous game that could blow up in its face if the Australian dollar doesn’t depreciate.
As it stands, the RBA is playing a very dangerous game. It openly admits that it has no idea how big the mining investment collapse will be -- neither does anyone else -- but the potential ramifications of getting policy wrong are profound.
If mining investment collapses before the dollar has fallen sufficiently, the non-mining sector will be in no position to fill the gap and rebalance the Australian economy. That scenario would inevitably result in Australia’s first recession in 23 years.
http://www.businessspectator.com.au...-news/rba-plays-dangerous-game-its-dollar-bet
