Australian Building Funk Continues As Foreign Central Banks Goose Aussie Dollar

Two from MacroBusiness:

Here’s the July PCI, about which I have previously expressed doubts whether it is correctly measuring engineering work. Anyways, even if biased towards dwelling construction, it kicked downwards in July:

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And from the Australian Financial Review, "Foreign bank buying pressures $A":

Foreign central bank appetite could be adding up to US15¢ to the value of the Australian dollar according to one strategist, as the market awaits commentary from the Reserve Bank of Australia on the high dollar following its rates meeting on Tuesday.

Morgan Stanley strategist Gerard Minack wrote in a note to clients this morning that offshore central bank inflows could be pushing the Australian dollar by between US10¢ and US15¢ beyond its fundamental value.

“The Australian dollar is benefiting from the global hunt for safe assets. We think safe haven flows have added around US10-15¢ to the Australian dollar. Suggestions that the RBA intervene to cap the currency make sense, in our view, but we don’t think Reserve Bank action is imminent,” Mr Minack said....MORE

HT: MacroBusiness 

Yesterday:
Australian Resource Companies: Prices Collapsing