Strain on dip­ping dol­lar

Townsville Bulletin - - NEWS -

THE Aus­tralian dol­lar has lost a quar­ter of its value in the past two years, which begs the ques­tion: How low will it go?

The cur­rency has been hit­ting a sixyear low of be­low 73¢ US in re­cent days, af­ter be­ing above $ US1 in May 2013.

Plum­met­ing prices for Aus­tralia’s min­ing ex­ports, a weaker out­look for the Chi­nese econ­omy, ex­pec­ta­tions of a loom­ing in­ter­est rate hike in the US and tur­moil on the Chi­nese stock mar­ket in the past few weeks have all been a downer for the lit­tle Aussie bat­tler.

While most an­a­lysts were say­ing the Aussie dol­lar wouldn’t fall much fur­ther, LTG Gol­dRock di­rec­tor An­drew Bar­nett was more pes­simistic, and pre­dicted it would be 63¢ US by the mid­dle of next year.

“I think it’s un­der a lot of pres­sure at the mo­ment with plum­met­ing Chi­nese stock mar­kets and com­mod­ity prices and the volatil­ity we’ve seen is not help­ing our lo­cal mar­ket and it’s not help­ing the Aussie,” he said.

Mr Bar­nett found it strange that most an­a­lysts weren’t pre­dict­ing a fall be­low 70¢ US by the end of the year.

“I think most of them are be­ing op­ti­mistic and cau­tious,” he said.

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