The Australian dollar under 70 US cents this week is one of the largest trading points here on the trading desk. What we’re seeing is the Australian dollar dip below 70 cents late last week is forming some type of a recovery in early Asian trade at the beginning of the week, but not enough to see it breakthrough that 70 cents mark. Now 70 is very important, we’ve been talking about the Australian banks over the past few weeks, we’ve been talking about thematic investments, we’ve been talking about equity exposure. But the currency situation is quite large becausethe Australian dollar is a very heavily traded currency. It’s also a view on the Australian economy, it’s a view around the growth numbers that came out last week, it’s a view around inter trade expectation; It’s a view around commodity process. Australia is still seen as a commodity economy. Our largest export iron or is somewhat hanging in there but other base metals aren’t exactly shooting the lights up and there not and there not providing a very good gauge, in terms of providing future directions for commodity process. Energy is also very important, what we’ve seen over the past few years is Australia transition into a key energy exporter. A lot of the key large infrastructure projects which took place over the past decade or so, around gas are now starting to come on and they’re coming on at a time where energy process are quite depress. So the view that the global market are making on the Australian economy is the one that perhaps isn’t as rosy, we expect the Australian dollar to remain weak and in a downward trend, there’s nothing there yet to suggest that it’s about to breakout or form some type of a recovery. The key point here is that as the Australian dollar force Australian assets becoming relatively cheaper on a global basis and on a US dollar term. For example the Australian market at 5000 on the 86,200 is very different on 70 cents or 65 cents to where it was at 80, 90 or parity and so we think as the currency come down there will be some support for Australian top assets. Whether its stocks, a direct investments, modern acquisition activity, that’s key on our radar. The other things that we’re watching for, the other things that we’re keeping an eye on when we put together thematical investments, we’ve launch an Australian Takeover Targets strategy. Our strategy Australian Targets that perhaps the most likely to be taken over that’s on the Invast PortfolioInvestor platform. So the Australian dollar is very important. In summary, we’re watching very closely, even if you are not a foreign exchange trader, where the currency goes or what happen to other asset process. CONNECT WITH INVAST TODAY Facebook ► https://www.facebook.com/invastglobal Twitter ► http://twitter.com/InvastGlobal Linkedin ► http://www.linkedin.com/company/invast Invast ► http://www.invast.com.au Google+ ► https://plus.google.com/+InvastAu/

• published: 07 Sep 2015
• views: 286