The Australian dollar: Still overvalued?

Two years in investing, especially in turbulent times such as these, can feel longer. In October of 2010, I published this Doddsville article asking whether the Australian dollar was overvalued.  Back then I said that, although the dollar was historically high, this was no bubble; higher commodity prices meant that the dollar was behaving exactly as it should. Today, however, the commodity boom is over. Prices for just about all resources have fallen heavily, none more so than coal and iron ore, Australia’s two largest exports. If high commodity prices caused the dollar to soar, lower prices should prompt a fall,...

Two years in investing, especially in turbulent times such as these, can feel longer. In October of 2010, I published this Doddsville article asking whether the Australian dollar was overvalued.  Back then I said that, although the dollar was historically high, this was no bubble; higher commodity prices meant that the dollar was behaving exactly as it should.

Today, however, the commodity boom is over. Prices for just about all resources have fallen heavily, none more so than coal and iron ore, Australia’s two largest exports.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles