The US dollar has traded sideways for a couple for weeks now, and the world’s central bankers are holding their breaths: was the post-US-election 4 per cent rally the end of it, or has a new dollar bull market just begun?
For Australia, US dollar strength is mostly good. In 2010, commodity price strength was accompanied by US dollar weakness, which sent the Australian dollar above parity, closed the car industry and contributed to a rise in unemployment from 5 to more than 6 per cent.
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