RB Australia, Governor had this to say in his remarks on 20 March 2015 to the American Chamber of Commerce in Australia at Melbourne:
"It is expected that the Federal Reserve will, some time this year, lift the federal funds rate accelerator off the floor. If that happens there will no doubt be some disruption, as always, and more so as it will be the first Fed tightening for nine years and the ECB will be easing policy at the same time. So there is likely to be some turbulence in asset and foreign exchange markets. On the whole, though, I think we should regard the Fed's likely actions as a positive development. Fed policy is still likely to be quite expansionary for some time. "
By his admission "In Australia, international competitiveness is improving, due to the declining Australian dollar."
The Canadian Economy may also welcome recent strengthening of the dollar.
"It is expected that the Federal Reserve will, some time this year, lift the federal funds rate accelerator off the floor. If that happens there will no doubt be some disruption, as always, and more so as it will be the first Fed tightening for nine years and the ECB will be easing policy at the same time. So there is likely to be some turbulence in asset and foreign exchange markets. On the whole, though, I think we should regard the Fed's likely actions as a positive development. Fed policy is still likely to be quite expansionary for some time. "
By his admission "In Australia, international competitiveness is improving, due to the declining Australian dollar."
The Canadian Economy may also welcome recent strengthening of the dollar.
CAD-USD Noon Rate
Source : Bank of Canada
Without any risk or responsibility on the part of the author.
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