(1st chart)USD just reached a 10 year high last night against the BRL in anticipation of fed interest rate rises this year. This will be great for exporters and AVB who has USD for getting into production.
This means that at current copper prices, we are set to receive 8 BRL for every pound (2nd chart) which is still miles higher than back in the gfc.
This presents AVB with the ideal situation of getting the most bang out of their buck as they change their USD to commence construction amidst a gloomy construction/mining sector (better contracts).
If management do indeed read hotcopper, i urge them to start considering a currency hedge. When commodities roar back again, BRL will recover a lot of their ground vs USD much like our AUD.
AVB Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
