Principal and Strategist at GlobalFXWed, Nov 07 2012 03:00 GMT
Duration: 0 h, 45 min
Moderator: Vicky Ferrer
“On April 19 2001 the Australian Dollar hit an all-time low of 0.4775 against the US Dollar.
Both the Aussie and Australia were seen as old world having little to offer in the new digital age. But in November 2001 when China joined the WTO and began its inexorable march toward becoming the second largest economy on the world everything changed for the Aussie and the Australian economy. The mining boom that eventually occurred in Australia from 2006 onwards drove the Aussie to the highest levels since the float in 1983 and insulated the economy from the worst of the GFC when it morphed into Mining Boom Mark II.
The Aussie dollar was morphing too incredibly hitting a high of 1.1080 in July of 2011. This is incredible for a currency that always crashed when the globe went a bit fearful or risk off it. The Aussie has now become the safe havens, safe haven with even the Swiss National Bank increasing its holding in AUD.
But with the end of the mining boom Mark II and the slide of the Australian economy, RBA rate cuts and the Australian Government’s budgetary position into deficit risks are rising that the love affair of offshore investors with Australia and its Currency is nearing an end.
Yet all those who have tried to sell it recently have had their fingers burnt.
Join Greg McKenna, Australia’s first Currency Strategist at Westpac and former head of Currency Strategy at NAB as he discusses the competing themes and tries to draw some conclusions for the future.
Where too next for the Aussie Dollar? Where too indeed”
Recording of the webinar