Remarkably it seems the Australian dollar could well be on its way back to parity and it appears the burgeoning Liquefied Natural Gas (LNG) industry is to blame!
According to a report in The Australian Financial Review, the step change in LNG supply from projects being delivered by Santos Ltd (ASX: STO), Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: OSH) amongst others, could increase the trade balance which in turn increases the demand for Aussie dollars.
While any renewed strength in our currency will be a negative for many domestic companies there are also firms which stand to benefit from a strong dollar.
Here are three stocks which stand to benefit.
1) Flight Centre Travel Group Ltd (ASX: FLT) can expect to see an uptick in enquiries and booking as the strong currency makes overseas travelling more affordable and compelling.
2) Qantas Airways Limited (ASX: QAN) as Australia's major carrier could also expect to benefit from an uptick in outbound tourist travel.
3) Toll Holdings Limited (ASX: TOL) – A rise in the Aussie dollar will once again put renewed pressure on domestic retailers as the cost advantage of purchasing from online foreign sites increases. One company which can benefit from the online sales trend is freight and logistics provider Toll.
