ABC News out of Australiais reporting that experts are lowering expectations on the strength of the Australian dollar after slipping against the USD this past week.
In January, a panel of experts predicted that the Australian dollar wouldn't fall below the value of the greenback - but many are changing their mind after the AUD fell to .96 USD this past Friday. The panel includes an independent economist, a JPMorganChase executive, and even a high school student - leading to an interesting question as to just how much this group of "experts" is really qualified.
As we've been talking about currency exchange, this is a very interesting piece of news.
Of course, we know from class that this is because of many factors - currencies are constantly changing value compared to other currencies due to actions on the FOREX. The fall was likely due to a massive trade-off at the end of the month, increasing the supply of Australian dollars on the market.
In addition, we know that speculation can lead to a downward spiral as people continue to sell-off in panic. It will be interesting to see what happens to the AUD throughout the coming weeks. The Australian economy is currently strong and Australians are doing well to avoid debt, so nobody knows what could happen.
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