Laurence Bristow: The Australian dollar’s significant misalignment with fundamentals, RBA’s flexible inflation targeting between 2% to 3%, and the shift to a demand-driven reserve system | Macro Musings

The Australian dollar is currently trading away from its fundamental value, indicating potential misalignment with economic indicators. The Reserve Bank of Australia (RBA) targets a flexible inflation range of 2% to 3% to manage consumer price stability. Australia’s unique economic conditions dur…

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