Days like today, I put AUSUSD of 83 cents into my model and IO = $US89 for FY15. I get a 19 cents per share increase in cash profits, $260m just from a 10 cents fall in the currency.
On the currency, there are more and more media reports commenting the commodity (ie Iron Ore) representing 20% of Australia's export income has fallen sharply but the currency hasn't moved. Both can't be correct for very long and won't be.
What time frame is the big question of course (as always)...
ARI Price at posting:
77.5¢ Sentiment: Buy Disclosure: Held
