|As an exporter with BHP I can remember many years ago when an Australian dollar bought about $1.30 US dollars. Hard to believe - when you recall such eras it is a sure sign that you do have some years under your belt!
A strong currency is a sort of compliment - backhanded some people might say - for a well regarded economy and over the recent years the Australian economy has been without doubt a stellar performer and is likely to continue to be a winner for at least the coming 12 months.
So where to the dollar? I believe the dollar will climb higher but the main run up has already occurred. Breaking through US$0.68 was a major feat but you will note from the chart below that for the moment it seems like it wants to oscillate around the US68 cents mark before attempting new heights. Note also how there is divergence since May this year - the oscillator has not kept pace with the underlying dollar movement. The oscillator like any indicator is not infallible but it cannot be ignored. The oscillator could go higher but it is unlikely to do so quickly.