I'll leave it up to the day traders to guess how many US dollars the Australian currency will buy tomorrow, but it's a fairly safe bet to assume our dollar will fall (considerably) in the medium and long terms.
Already we are seeing signs of the US dollar strengthening — it has risen for eight consecutive weeks and is sitting roughly 3.5% higher than in July. With the US Federal Reserve almost certain to lift interest rates next year, that trend is highly likely to continue over time. In fact, while the Australian dollar is currently buying US93.66 cents, it is still sitting more than 22% above the 20-year average level of roughly US76.64 cents, according to data provided by foreign exchange business OzForex Group Ltd (ASX: OFX).
An incredible opportunity
The smart investors will see this as a massive opportunity to make some handsome profits over the coming years. While many, like myself, are stocking up on US equities, others are simply acquiring shares in Australian companies which are highly leveraged to the American economy.
For instance, the newly created Westfield Corp (ASX: WFD) and ResMed Inc. (CHESS) (ASX: RMD) both seem to be gaining popularity with their shares trading significantly higher in recent months. Westfield Corp owns and operates all of Westfield's US and UK shopping centres while ResMed makes most of its sales of respiratory disorder treatment products in the Americas.
However, the opportunities don't cease there. Investors could also look towards other high growth companies including Amcor Limited (ASX: AMC), Flight Centre Travel Group Ltd (ASX: FLT) and SEEK Limited (ASX: SEK) which all enjoy significant offshore earnings.
Making your fortune
Buying companies heavily exposed to international markets while the Aussie dollar is riding high is a great way to potentially turbocharge your profits over the coming years. However, it's by no means the only way you can boost your returns.
