On December 9, 1983 Prime Minister Bob Hawke and the Labor party floated their currency in a reflection of the balance of payments. Commodities make up a large portion of exports so a rally in commodity prices generally coincides with a rally in in the Australian dollar.
Maybe AUD is a great way to protect wealth in real terms.
Back on June 8th I said that the flight to quality had hit the AUD quite hard and that it was time to diversify into these currencies with stronger balance sheets. Since that time the AUD has risen about 19%.
