Is the Australian dollar overvalued?

Elsewhere yesterday, we saw the Australian dollar continue to struggle amid the notion that the currency is overvalued. There is a feeling among traders that the Reserve Bank of Australia will intervene in the currency markets to push down the value of the Australian dollar, which officials believe to be at elevated levels, hence posing a risk to the export-reliant economy. The Japanese yen strengthened against the majority of its major peers, as the evidence of an inverse correlation between the Japanese currency and the Japanese stock market continues. Comments made by the Bank of Japan suggested some officials saw certain risks to the outlook of the country’s economy. This triggered traders to sell off riskier stocks and buy into the traditionally safe-haven yen. Following on from comments in Monday’s market update, the Canadian dollar continued to be dragged down by falling oil prices. Looking forward to today we have little in the way of data releases, so markets will be susceptible to external factors. Get in touch with your trader for a live rate.