Riding the Australian dollar investment train

WITH the Singapore dollar at better than parity with the Australian dollar (AUD), investors usually start thinking about more investment in Australian stocks, property and other investments. Despite changes to the Australian Foreign Investment rules which have added thousands of dollars to the application process, Australia remains a useful place for investment, and hopefully in 2021 as international travel resumes, a good place to visit.

If the AUD exchange rate has peaked then investors need to move quickly to lock in current exchange rates. But if there more upside to the AUD/USD trend then investors may choose to wait a little longer.

Traditionally, the strength of the AUD has been closely related to the status of Australia's relationship with China. For most of 2020 this relationship has gone from bad to worse to catastrophic, with a mini-trade war in place.