Bullish for AAC, page-10

Whilst I agree the USDX is at approximately 89, this is an index of US's six most significant trading partners, and their currencies. Australia is not one of these. It is better to compare currencies directly in this case. Currently Aud is 77c, having dropped from parity over the last 5 years or so. It rose from 60c in 2008 to just above parity after the GFC, then has slid down to 77c Aud is still being pressured down over the last year, compared with $US. If interest rates continue to increase in the USA, and Australia does not follow suit, IMO the Aud will continue to fall. Generally this is a reversal of what occurred 10 years ago. Hence AAC is generally well positioned as a hedge, together with the "trade war" issues I would not be too happy if I was a US beef producer looking to expand/ exports. Other countries are shuffling to reposition their efforts and beef in Asia is potentially a growth market: for this market IMO australia is well positioned already