I don't think the price of IO will be the issue as they have factored in fairly low prices. However, the exchange rate is another matter as they have assumed 84c and 80c (if I recall) which is a long way from where we are now, and the trend is going against us at the moment.
Everyone considers the AUD overvalued, but it could be a while before it starts to drop - there does not seem to be much motivation to raise interest rates anywhere in the world (Europe just dropped theirs) and until that happens our currency will stay high (and go higher if we don't cut rates also).
It won't be long before the high AUD is again the No. 1 concern of the Reserve Bank. They tried talking it down last time and that worked for a few months. They will need to do something different next time. The cost to Australia is too great - we are being taken for a ride in these currency wars.
IOH Price at posting:
88.0¢ Sentiment: Buy Disclosure: Held
