Getting The Blues, Australian Dollar Getting Back to The Roots

        0754 GMT [Dow Jones] A star of global currency markets in 2014 has been the Australian dollar, rising from $0.8660 in January to $0.9461 in April. On Friday, it rose again near $0.9297. Shane Oliver, head of economic research at AMP Capital, says to dismiss Friday as merely covering up short positions. With that now over, the Aussie could drift back toward $0.8000 over the medium term as the Aussie goes back to tracking commodity prices, Mr. Oliver says. "Commodity prices remain relatively soft and the Australian dollar is likely to revert to levels that offset Australia's relatively high cost base," he says. If the centre-right government introduces new taxes on May 13, the Aussie's slide might gather pace as investors factor in slower economic growth, Mr. Oliver adds. (james.glynn@wsj.com)
        (END) Dow Jones Newswires

        May 02, 2014 03:54 ET (07:54 GMT)