Oliver's Insights


Shane Oliver discusses the falling trend in the Australian Dollar and what this means for the future Australian Economy.

The key points are as follows:

• The $A has more downside and is being driven lower by a combination of a stronger $US, a secular downtrend in commodity prices and a narrowing in the interest rate differential in favour of the $A.
• It is likely to fall to around $US0.70 by year end and then into the $US0.60s as part of an overshoot on the downside to make up for the damage done by the strong $A years.
• The downtrend in the $A will help the Australian economy and share market, but highlights the case for global investments denominated in foreign currencies.

To view the full article on our website click here: $A – OI #26 2015