After two years of erosion the Australian dollar has finally reached lows that qualify as fair value on many measures, yet analysts are rushing to predict further losses for a currency with a long history of overshooting in both directions.
Many see a slide under 70 US cents as inevitable given a corrosive mix of Chinese risk, a sustained slump in commodity prices and the prospect of higher US interest rates. The only question appears to be how low it might go.
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