Due to a combination of strong economic data out of the United States, weak data here in Australia, and a falling iron ore price, the Australian dollar continued its decline and sank over 2% lower in October.
With the local currency now fetching 76.6 U.S. cents, it is over 5.5% lower than the 52-week high it made in September.
Which is great news for a number of companies on the Australian share market which generate sizeable revenues over in the United States.
Two growth shares which I expect to benefit from these currency tailwinds are listed below:
Aristocrat Leisure Limited (ASX: ALL)
This gaming technology company generated $715.8 million, or 58.8% of its sales, in the Americas region in the first-half of FY 2017. In addition to this, a further $178 million was generated from its Digital segment during the half.
I suspect the vast majority of the revenue from these two segments is derived from the U.S. market. Aristocrat's Digital segment will receive a major boost in FY 2018 thanks to the recently completed acquisition of Plarium for US$500 million. Plarium is the company behind the popular Vikings: War of Clans game.
Nanosonics Ltd. (ASX: NAN)
Although Nanosonics has expanded its presence into other territories over the last 12 months, the company generates the majority of its revenue in the U.S. market. As of the end of FY 2017, the infection control company's trophon EPR product had grown its installed base to 14,100 units globally.
Approximately 12,400 of these units are installed in North America, where there is an estimated addressable market of 40,000 units. I believe that its best-in-class status will help win an even greater share of the North American market in the coming years, as well as the addressable global market of 120,000 units.
