Up, up and away for Sydney Airport

Chief Investment Officer and founder of Aitken Investment Management
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Key points

  • Strategy is based on the RBA cutting by 25 basis points to 2.00% at the May meeting and the A$/US$ cross rate breaking below 75 US cents.
  • The Aussie dollar fall is driving international inbound tourism.
  • The 12-month Sydney Airport price target is upgraded from $5.55 to $6.00

Reserve Bank Governor Stevens pulled the rug from underneath the Australian dollar on Monday night with more direct currency jawboning, this time in front of a receptive audience in New York.

The A$/US$ cross was trading up (78.5 US cents) after the better than expected March employment data in Australia, perhaps even heading towards 80 US cents on short-covering, when Stevens again took direct aim at the currency, which saw it track back down to 76.88 US cents.

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