The Australian dollar is now seen trading at fair value, economists say

From theage.com.au

The Australian dollar is unlikely to drop much between now and the end of the year, according to a survey of 25 market, academic, independent and industry economists, most of whom say the local unit is close to fair value now. Estimates range from US68¢ to US80¢, with the average coming in at US73.8¢. This compares with US76.3¢ in late trade on Thursday. "Fair value" normally reflects calculations based on Australia's terms of trade - the price of exports versus imports - and the difference between government bond yields in Australia and the United States. Some economists broaden this model by adding movements ... (full story)