Further Declines in Australian Dollar Needed

A slide in the Australian dollar toward 85 U.S. cents probably wouldn’t be sufficient to wean the local economy off its dependence on resources industries, according to speakers on a panel at the Bloomberg Economic Summit.

The currency may fall as low as 85 U.S. cents over six months, Philip Moffitt, the head of fixed-income for Goldman Sachs Asset Management in Asia Pacific, said today at the event in Sydney. The Aussie traded at 90.44 cents as of 1 p.m. local time and has declined 3.2 percent this month.

A steeper slide than that is needed to provide stimulus for services and manufacturing industries that languished during the mining investment boom, according to the panel, which also comprised Westpac Banking Corp.’s Hugh Killen and JPMorgan Chase & Co.’s Sally Auld. Killen and Auld said the Aussie will remain around 90 cents, supported by investors hungry for Australia’s higher-yielding assets.


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