Australian Businesses Are Expecting The Dollar To Move 20 Per Cent This Year

Australian businesses are bracing for more exchange rate volatility this year, with the dollar expected to move 20 per cent against the USD.

East & Partners reports that 88.9 per cent of Australian import or export businesses “strongly believe” that the AUD will be more volatile in 2014 than 2013.

Based on a survey of 862 businesses, East & Partners found businesses expecting the exchange rate to move up to 19.9 per cent, indicating a range of about $US0.72 to $US1.08.

“The number of variables impacting the AUD/USD continues to expand at a rapid pace,” East & Partners Senior Markets Analyst Martin Smith said.

“The interest rate differential with the US, relative rates of economic growth, balance of payments figures and commodity prices are just a few of the main influences on underlying changes in the closely monitored currency pair.”

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