Aussie Dollar's Built-In Strength

  The Australian dollar has recovered sharply from its lows last year reflecting a combination of & #36;US weakness, stronger commodity prices and the likelihood Australia will be the first major country to start raising interest rates.While a short term correction in the & #36;A looks likely, the broad trend in the & #36;A is likely to remain up reflecting the realities of a commodity constrained world and the relative strength of the Australian economy. Another go at parity is likely next year.The dollar hit a new 13 month high of 88.47 US cents overnight Wednesday.That was more to the weakness in the greenback meeting renewed demand for Australian dollars ahead of an expected interest rate rise from the Reserve Bank.The AMP's Dr Shane Oliver & #160;says this presents obvious challenges for the Australian economy as trade exposed manufacturers and service industries suffer a loss of competitiveness. For investors, it means there is a case to limit exposure to unhedged international investments. & #160;  

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