Is there a common response in Australian bilateral exchange rates following current account announcements?

Abstract

A growing literature exists analysing the impact of balance on current account announcements on bilateral exchange rates. This literature typically considers and reports results for a number of bilateral exchange rates. This paper investigates whether there are distinct effects across the range of bilateral exchange rates, or alternately whether a common response carries across all the bilateral exchange rates. Our results favour a common response. JEL classification: F30.