Australia primed for strong dollar performance
David Scott (Media Unit) T: +613 83440561 M: 0409 024 230 E: email@example.com
21 September 2009
Commodity prices are set to push the Australian dollar higher in the not so distant future, according to Dr Les Coleman. The indicators are quite good for the global economy and it looks like there will be recovery in place next year. That means growing demand for commodities, higher prices for commodities and in turn these prices will probably significantly support the Australian dollar, and will also get some support in the rise in interest rates that the central bank seems keen on.
But will we see a continuing increase? Not so long ago the mining companies were talking about a once in a generation boom in commodity prices. Now that was killed by the GFC, but if it comes back next year we may well see a long term uptrend in commodity prices.
Dr Coleman is a Senior Lecturer in Finance in the Faculty of Economics and Commerce. A full staff profile can be found at http://www.finance.unimelb.edu.au/who/staffweb.cfm?StaffNo=113.