New pressures for the almighty Australian dollar

The Australian dollar is still an overvalued safe-haven investment in a sea of high-level risk, but its fall over the last month may be a taste of things to come.

It looks like the long overdue and often remarked upon depreciation of the Australian dollar has started.

It has dropped by around 4 per cent in the last month, not only against the US dollar, but on the trade weighted index which is a basket of global currencies calculated by the Reserve Bank of Australia.

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