According to exchange-rate overshooting, an appreciation of the Australian dollar is likely to be greater over a long time period than over a short time period.

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Exchange-rate overshooting suggests that in response to a shock, exchange rates will initially overadjust (overshoot) and then gradually move back to their long-term equilibrium level, implying a larger initial change followed by a correction rather than a greater change over a long period.

According to Exchange-Rate Overshooting, an Appreciation of the Australian Dollar