Both the pound and the Australian dollar have weakened considerably against the euro since July.
Also keep in mind that yield-hunters flock to the Australian dollar, but be careful.
The most undervalued of all the rich-world currencies is the Australian dollar, currently 38% below McParity.
The Australian dollar weakened slightly, dipping 0.7% against the US dollar, after the rate cut was announced.
Even the Australian dollar, one of the more reliable sources of higher income, is losing its appeal.
It also said it would consider increasing the offset above 16.5 percent if the Australian dollar remained high.
The Australian dollar was little changed on the news, while the main Sydney stock exchange was down slightly.
However, the strength of the Australian dollar remains a source of concern, as it hurts manufacturing and other sectors.
BBC: Australia adds 71,500 jobs, the biggest jump since 2000
The Australian dollar rose sharply in value last year, which helped push its two biggest cities up the chart.
The CurrencyShares Australian Dollar Trust ( FXA) tracks the exchange rate of the Australian dollar and currently yields 3.1%.
Asian stock markets ticked higher on the news, while the Australian dollar gained.
The strength of the Australian dollar has made it more expensive for visitors.
It also explains the sustained appreciation of the Australian dollar, which has strengthened markedly since the start of the year.
The strength of the Australian dollar is also causing problems for the economy hurting sectors such as tourism and manufacturing.
Linking the kiwi dollar to the Australian dollar would not eliminate the overall risk of exchange-rate volatility facing New Zealand firms.
ECONOMIST: Should Australia and New Zealand form a currency union?
The Australian dollar hit parity with the U.S. dollar last week for the first time since Sydney floated the currency in 1983.
Its policy is to favour a free float, which is shorthand for letting the market set the value of the Australian dollar.
The Australian dollar has risen more than 8% against the US dollar since June making Australian goods more expensive to foreign buyers.
The Reserve Bank of Australia lowered their key interest rate by 25 basis points to a record low of 2.75%, pressuring the Australian dollar.
FORBES: FOCUS: RBA Rate Cut Doesn't Support Gold; Other Factors Influencing
Japanese stocks surged on Tuesday, hitting a fresh multi-year high, while the Australian dollar fell after the Reserve Bank of Australia cut interest rates.
In Australia, the Australian dollar fell after the Reserve Bank of Australia cut interest rates by a quarter of a percentage point to 2.75%.
The CME trades futures on 13 currencies, from the Australian dollar to the Swiss franc, with expiration dates in March, June, September and December.
Of the seven currencies that make up the Federal Reserve's major-currency index, only one (the Australian dollar) is within 10% of its fair value.
Buoying the Australian dollar has been strong demand from overseas investors.
WSJ: Asian Governments Take Measures to Battle Strong Currencies
Demand for Australian iron ore, coal and natural gas, mostly from Asia, has pushed up the Australian dollar, which remains above parity with its U.S. counterpart.
The Australian dollar might be undervalued according to your Big Mac index, but at least when you have one you know it is the genuine article.
But it was the pound's 7% fall against the yen between February 27th and March 5th a plunge as big as the Australian dollar's that raised some eyebrows.
ECONOMIST: The pound stumbles as currency speculators cut back on risk
The Australian dollar, the New Zealand dollar, the Brazilian real and the Turkish lira were all marked down during the market squalls, particularly against a resurgent yen.
ECONOMIST: The pound stumbles as currency speculators cut back on risk
Comparing Australia with Mexico won us few friends, yet to some extent we were right: the Australian dollar has fallen by almost two-fifths against the greenback since 1996.
ECONOMIST: How did Australia buck the worldwide economic downturn?
According to the Australian Petroleum Institute, the price of petrol "has largely been driven by rising international crude oil costs and the falling value of the Australian dollar".
应用推荐