Stephen, what do you make of the lacklustre performance of the AUD against other (non-commodity) currencies in recent years, like the Euro? The AUD/EUR was relatively strong in 2022, but is now down below pre-pandemic levels despite commodity prices in your chart remaining well above pre-pandemic levels.
Since the invasion of Ukraine, the underperformance against the EUR has been less pronounced than against USD. Underperformance against CHF is more pronounced than both, but suggests risks aversion playing a large role.
Stephen, what do you make of the lacklustre performance of the AUD against other (non-commodity) currencies in recent years, like the Euro? The AUD/EUR was relatively strong in 2022, but is now down below pre-pandemic levels despite commodity prices in your chart remaining well above pre-pandemic levels.
Since the invasion of Ukraine, the underperformance against the EUR has been less pronounced than against USD. Underperformance against CHF is more pronounced than both, but suggests risks aversion playing a large role.