Thursday, October 13, 2011

Currency Currents

What a difference a week makes. Todays stronger than expected unemployment numbers have sent the $AUD as high as $1.02 again. Were these really the reports only a week ago:

Cairns Post:  "the Australian dollar could fall to as low as US80c in coming weeks"
ABC: "Dollar dive tipped to boost tourism"
Gold Coast Bulletin: "The Australian dollar may stay below parity until about February."

There has been lots of currency controversy this week with the US Senate passing a measure designed to potentially punish China because of a perceived undervaluation of the Yuan. This chart posted today at macrobusiness provides an interesting perspective.

It would be useful to know when this chart was compiled as some aspects don't seem quite accurate to me on current exchange rates. However, China has been allowing a steady appreciation of the Yuan for many years.

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