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Australian dollar overvalued says top forecaster

AUDUSD News by Newsroom on 02:08 July 13, 2016 EST
The yield premium that Australian debt offers over other developed market peers has helped the Aussie, but that might change with the Reserve Bank of Australia having more room than its counterparts to lower its benchmark, according to Unicredit SpA.

The "overvalued" Aussie will underperform other commodity currencies such as the Canadian dollar and Norway’s krone, London-based Vasileios Gkionakis head of global foreign-exchange strategy at the firm said Bloomberg reports.

With its benchmark interest rate at 1.75 percent is the best deal excluding New Zealand among developed-market central banks. The prospect of using that in the event of global uncertainty will cap gains for the currency, according to Gkionakis.