Banking

The Aussie dollar continues to be the bolter of global currencies as it benefits from the weakness of the Greenback and rides the global commodities boom and the China story.

Everyone is making predictions at the moment about where the currency will top out. Some are saying $US1.10, others are going as high as $1.23 while some are saying it will stay at these levels for years to come… that “things are different now”.

When we start hearing that we get worried. It’s never “different”.

Investment markets always trend make to history and it’s only a matter of time when they do. That’s the big question… the timing.

The historic average of the Aussie dollar is US70-80 cents.

The long term harm to Australian exports of a currency at these levels plus a future rebound in global economies need to be taken in to consideration.