Is the dollar back on the rise?

Higher commodity prices, looming interest rate hikes and stronger GDP growth point to a rising Aussie dollar in 2014. A return towards parity could be on the cards.

Foreign exchange and bond markets are starting to ‘get it’. There is a growing understanding from investors in global markets that we are witnessing a marked improvement in the world economy. In addition to this, there are clear signs of an upturn in the Australian economy and there are even snippets of news in some of the recent economic data that suggest the Reserve Bank could be hiking interest rates during 2014.

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