Currency traders will be keeping a close eye on tonight’s Federal Budget to see whether it pushes the Aussie dollar back over parity with the $USD, reports The Australian.
Better economic figures in the US have sent the greenback up, and the result has been a roller-coaster ride for the Australian currency.
US retail sales rose a little in April, defying predictions of a fall, and one result was a drop in the $AuD to 99.77c at midday today.
Analysts say a fall in the dollar’s price is likely to have a badly-needed stimulatory effect on the local economy as the steam goes out of the mining boom.
But the falling value of the currency provides one more hard-to-predict variable for Wayne Swan and the Treasury as they launch the Budget this evening.