After recent sharp falls the $A may see a short-term bounce, but the broad trend is likely to remain down against the $US reflecting a rising $US generally, a...

AMP Capital

AMP Capital

After recent sharp falls the $A may see a short-term bounce, but the broad trend is likely to remain down against the $US reflecting a rising $US generally, a secular downswing in commodity prices, overvaluation in terms of relative prices and monetary tightening in the US relative to Australia. So while the $A may consolidate into year end, it's expected to see another leg down next year taking it to around $US0.80. The downtrend in the $A is good news for the local economy and share market (via a boost to earnings), but along with the downtrend in commodity prices highlights the case for global investments in foreign currencies. Full commentary from our Chief Economist, Dr Shane Oliver: (VIEW LINK)


AMP Capital is one of the world's leading investment houses, with a 160-year pioneering heritage. Our enviable track record in real estate and infrastructure is coupled with deep expertise in fixed income, equities and multi-asset investments.

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