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Mar 19

The decline of the Aussie … almost halved in value since July 2011

The above interactive chart shows what the latest crisis events have invoked on the Aussie dollar. At the time of writing trading around $0.57US which is down from a high in July 2011 around $1.10US … so almost half.

Unfortunately for our currency this is what happens when crises occur … investors run to the safe havens of the US Dollar, which is still the global reserve currency.

That said, considering Iron Ore is still high at around $100USD, there is strengthening potential … just our near zero interest rates serves as a brake.

Chart 2 – Iron Ore Prices in USD – since 2012 and to 19 Mar 2020 – 4pm AEST

Iron Ore - 19 Mar 2020

Source: Bloomberg

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