The Australian dollar's (A$) brief foray below parity during late September and early October has been quickly forgotten, with renewed clarity in global financial markets seeing it jump above 107US¢ this week. While the lower A$ of past weeks was very welcome by Australian red meat exporters, the 13-percent rise since the start of October will have taken many exporters and businesses, unfortunately, back to a point of uncomfortable familiarity.
After hitting a low of 95US¢ in early October, while many exporters noted that the lower A$ had made some difference to overseas interest, it was also being offset by renewed concerns about the global economic outlook. As such, hopefully the recent increase in the A$, largely on the back of brighter news regarding Europe's financial outlook, will also be matched by a pick-up in global demand and consumer sentiment.
Reprinted from Meat Livestock Australia