Aussie dollar nears its cyclical peak

The Aussie has been the second-best performing currency this year (after South African rand). It is up 31% year to date and up 55% from its 2001 lows. Using standard valuation tools, the Aussie is now above its long-run average (US$0.71) and our estimate of purchasing power parity (US$0.69). Market positioning is also extreme. Hence the risk/reward in buying Aussie at these levels is not as compelling as it was.

But traditional valuation tools are of limited value in the current environment

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: