Very. But not as much as it could get to:
My own view is that the dollar has further to rise, perhaps into the 82-83 cents range. It’s being driven by USD weakness linked to falling oil and fading fiscal hopes, plus China holding up better than markets thought through its tightening, expressed most obviously via rebounding iron ore.
Seems to me that could run through Q3 before it rolls with iron ore.
A temporary spike in the currency is an attractive entry point into international assets given the currency is structurally weak for the longer term.
Disclosure: I’m the strategist for the Macrobusiness Fund which is currently overweight international stocks. We also run an international equities fund. Both of these will benefit from a falling Australian dollar and so I am definitely talking my own book.
Register your interest in the fund and we’ll be touch.
