AUSTRALIAN DOLLAR - WHICH WAY FROM HERE?

OBSERVATIONS | AUGUST 2016

After reaching a low of USD 0.68 in January 2016, the Australian dollar has strengthened in recent months.


Not only is the Australian dollar important for the Australian economy, but it also plays a significant role for investors who hold assets in offshore markets. Given the importance of holding a globally diversified portfolio, a view on the outlook for the currency is a key driver for portfolio positioning.

In this article, we look at why the Australian dollar has moved counter to expectations in recent months. We also examine the key drivers of the currency, and how we think they will influence it going forward.