Following the Reserve Bank of Australia's decision to cut interest rates last month, ongoing weakness in commodity prices, and heightened expectations that the...

Following the Reserve Bank of Australia's decision to cut interest rates last month, ongoing weakness in commodity prices, and heightened expectations that the Federal Reserve will raise interest rates within coming months, it's no surprise the Australian dollar has taken a tumble of late. Indeed, after a slight firming trend following the February RBA rate cut, the $A has declined by around 3.6% in recent weeks to reach US76 cents. The trade weighted index exchange rate has declined by a somewhat smaller 2% over the same period. BetaShares' analysis, based on valuation models similar to those of the RBA, now suggests the Australian dollar is no longer overvalued compared to the US dollar. To read more on this, click the link: (VIEW LINK)