July 24, 2009
The Australian dollar (A$) surged above 80USą this week, boosted by the latest Consumer Price Index results from the Australian Bureau of Statistics, which showed Australian inflation at a 10-year low. After a very tumultuous 12 months, the A$ has been relatively steady since the start of June, fluctuating in a narrow band of 78-82USą.
Finishing Thursday at 81.8USą, the A$ is 16 percent below the corresponding day last year (96.8USą), after it peaked at a 25-year high of 97.9USą on July 17, 2008. Since falling to 61.2USą in late October last year, the A$ has appreciated 33 percent over the past nine months.
There is much debate about the future direction of the A$ between four of Australia's major financial institutions, with a range predicted of 73-84USą by the end of 2009 and 77-90USą by the end of the third quarter of 2010.
Reprinted from Meat and Livestock Australia