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Commsec’s iPod index reveals the Aussie dollar is at an all time low. The index, which uses the price of an iPod Nano to compare countries’ currencies found Australia had jumped to the cheapest spot.
Commsec’s iPod index reveals the Aussie dollar is at an all time low. The index, which uses the price of an iPod Nano to compare countries’ currencies found Australia had jumped to the cheapest spot.
Speaking with the Australian, CommSec chief economist Craig James revealed Australia had jumped from 14th place in July to the cheapest this week.
“It’s quite remarkable, we are the cheapest by a long way,” Mr James said. “Our currency has fallen dramatically.”
It would be about 25 per cent cheaper for a British tourist to buy their iPod in Australia, rather than at home, Mr James said.
But while having an Australian dollar at US65c-67c was good news for manufacturers and other exporters as well as the tourism industry, Mr James said the iPod index shows the Australian dollar may have fallen too far too quickly.
“It has become too cheap in a very short space of time.”
Meanwhile over at the NAB, Peter Jolly (head of research) said the dollar was currently undervalued.
“It’s not a US60c currency and it’s definitely not a US50c currency,” Mr Jolly said. “I think we will move back to US70c”.
Source:
The Australian
