Ann: Existing Lenders Extend Finance Facilities & COVID-19 Update, page-76

Some positive news. The AUD has been trading strongly for several months and has now increased to almost 72c USD. Based on this Livewire Markets article, retailers and especially apparel retailers are strong beneficiaries of this. Full article here for those interested: https://www.livewiremarkets.com/wires/winners-and-losers-from-a-strong-aussie-dollar

Chris Stott, Wilson Asset Management

As part of our investment approach, currency is one consideration among many factors, including the quality of the management, industry position and earnings per share, which we assess when evaluating a company as an investment proposition.

With most of their inventory imported from overseas, retailers, particularly apparel retailers, are among the beneficiaries of a strengthening Aussie dollar. While in most cases these businesses hedge against currency fluctuations, the share market will factor in future upsides of changes in the currency rate.

For example, Premier Investments (ASX: PMV) and The Reject Shop (ASX: TRS) are companies where unhedged earnings are highly sensitive to currency movements.