I posted yesterday on Dr. Shane Oliver, Head of Investment Strategy & Chief Economist at AMP Capital saying the $A was likely to fall into low $US0.60s
Oliver was commenting in the wake of the poor GDP data for Q2
(More on the GDP, ICYMI:
- Australian Q2 GDP growth - driven by government spending, household consumption
- The 'key surprise' in today's poor GDP data from Australia )
OK ... back to the press this morning on Oliver:
- "It's on its way to 60 cents,"
- "The Aussie is a volatile currency but the broader trend is downwards. We've got to US70 cents earlier than we thought, and it's got a lot further to go."
- "The falling dollar is largely in response to concerns about China. Commodity prices are down, global growth is soft and locally we've got this problem that non-mining economic activity has picked up but not enough to offset the slump in mining activity. These problems will be with us for years to come."
In the short term there may be some sideways to bounce for the AUD ... but over a longer horizon Oliver is pointing in the right direction. All the way to 0.60? That's gonna be some way off if it comes. One for the investors to worry about.
