AUD/USD is overvalued says this bank's iPhone and iPad index

Author: Eamonn Sheridan | Category: News

The new iPhone is being launched Tuesday 12 September 2017, but buyine one in Australia means you'll be paying above the odds.

So says Commsec, the securities division of Commonwealth Bank (CBA)
  • An iPhone 7 32 GB is $1,079 in Australia (approx. US$860)
  • In the US, the same phone is US$649 (more expensive in California)
That's a big difference, and it'll be reflected in the price of the new phone being launched

The CommSec index shows Australia is the 17th cheapest country in the world (of 57 nations) to buy an Apple iPad Pro in US dollar terms
  • This time last year, Australia was the 20th cheapest
  • The year before Australia was the second cheapest
Says Commsec:
  • Last year we surmised that the Aussie dollar probably was "fairly valued" or perhaps even slightly "over-valued". This year, the Aussie dollar looks more expensive. But "commodity currencies" like the Australian dollar, Canadian dollar and Norwegian krone are in favour at present. The Reserve Bank has grappled with the issue of whether the Aussie dollar is too firm against major currencies, saying "The higher exchange rate is expected to contribute to the subdued price pressures in the economy. It is also weighing on the outlook for output and employment."
This is what the new phone will look like, apparently. Still not in my footy club colours, sheesh.
(ps. I dunno about the Commsec index .... if the AUD was overvalued wouldn't the eyephonethingy be cheaper in AUD?)