Performance of the Australian Dollar during the Asian financial crisis. The falling Dollar acted as a buffer, protecting the Australian economy from the Asian contagion.
A similar 25% fall from today’s 72 US cents would offer a target of 54 US cents. No science to this. Simply speculation.
Is this speculation your current “mos likely” scenario?
As a contrarian thinker, the extreme bearishness surrounding the AUD has me wondering if the opposite will happen. In suing that, for the life of me I cannot see any fundemental reason for it to rise in the mid term.
Will be watching in earnest.
Probabilities are high that the Aussie Dollar weakens, ASX struggles, and US stocks recover quicker than elsewhere.