Macquarie says a “more significant” currency depreciation may be required
Following are the highlights of comments made by James McIntyre of Macquarie Bank about Australian Dollar. Aussie dollar has been laggard this week compared to its counterparts.
- Capacity for manufacturing to step up and deliver a meaningful contribution to the transition from mining to non-mining activity is limited.
- Structural challenges in automotive closures may weigh on the sector.
- A “more significant” currency depreciation may be needed, and for longer duration, in order to deliver sufficient signals to rebalance the economy.