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Meteoric rise in the dollar will soon run out of fizz

The recent rise in the Australian dollar to a two-and-a-half year high of just under US$0.80 has been meteoric. But while the dollar may orbit around that level for a bit, we don't think it will be too long before a reassessment of the outlook for monetary policy and a fall back in the price of iron ore prompts it to glide back down towards US$0.70.

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