Analysts now appear to be trimming their forecasts for the $AUD, with some now forecasting the dollar to fall below USD$0-80.
We have been talking about this for some time and remain of the view that the $AUD has further to fall. Therefore we believe that it is not too late for investors to position themselves to profit from this.
From an investment perspective, Australian companies that have earnings coming in from overseas stand to benefit from a falling $AUD. A lower $AUD results in their overseas earnings being worth more Australian dollars when converted using the lower currency.
Courtesy of Morgan Stanley, here is a list of major Australian companies which derive more than 30% of their sales from overseas.
Clearly we currently have a bias toward companies with overseas income, for more information and to highlight our best picks, please talk to your adviser.
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. We strongly suggest that no person should act specifically on the basis of the information contained herein, but should obtain appropriate professional advice based upon their own personal circumstances including personal financial advice from a licensed financial adviser and legal advice. Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306