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Weakening Australian dollar looks a lot worse than it is

From smh.com.au

Oh dear. While the pollies have been playing their games, the dollar has been falling and there’s even talk in the market of it going below US70¢. Is this a worry? Short answer: naah. At the local close on Friday the Aussie was at US72.8¢. That’s down from a recent peak in January of almost US81¢. Is that a bad thing? Depends who you ask. You can find plenty of people who’ll tell you a low dollar is bad and a high dollar is good. But most manufacturers, farmers and miners will tell you the opposite. The lower the better, they say. Truth is, a fall in the dollar has some advantages and some disadvantages; a rise in ... (full story)

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  • Category: Fundamental Analysis