For the first time industry super funds now have more money allocated to currency-unhedged international equities than they have invested in the Australian sharemarket.
Australian holidaymakers have intuitively known how to value our dollar since its float in 1983.
Below US65¢ is cheap so avoid the US. Above US85¢ is expensive so Disneyland, here we come. And if you see it below US50¢ or above $US1, take full advantage.
In fact, the average since the float is spot on US75¢, so that intuition is well-founded. However, it’s not just our tourism dollar impacted by the currency.
It is increasingly our investment dollar as well.
Source: https://www.afr.com/markets/currencies/the-big-but-not-necessarily-beautiful-bet-against-the-aussie-dollar-20250717-p5mfm9