Markets: The Aussie dollar's Chinese chains

Chinese demand for commodities is helping push the dollar back up and analysts are divided on whether it's trading at fair value.

After a 16 per cent fall between April 11 and August 2, the Australian dollar is, incredible as it may seem, on the rise. True, it is a modest one at best – up 2.5 per cent since August 2 – but nevertheless a gain.

At 0814 AEST the Australian currency was at 91.31 US cents, up from 89.05 US cents on August 2, according to Bloomberg data. So is it trading now at “fair value”, as ANZ Bank’s foreign exchange strategist Andrew Salter thinks?

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