The Australian dollar dilemma

The recent bounce in the $A against the $US might suggest to some that a revaluation of the $A is underway. We beg to differ, although we do acknowledge that the rate of devaluation of the currency will be much slower from this point. We use a number of charts below to illuminate our view. The following chart tracks the movements of the $A over the last ten years. The elevated nature of the $A from 2011 to 2014 is clear to see. Prior to 2008, the currency was fairly steady trading below US80 cents. The elevated $A was in response to a number of factors. Understanding the influence of each of these factors gives us an insight into the outlook of the $A. Read the full post (VIEW LINK)