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Your strategy depends on your investing purpose. Assuming you are investing to provide for your future retirement, then the currency of your investment should be in the same currency of your future liabilities. i.e. If you plan to return to Australia some day to live, then you should gradually move most of your investment dollars to Australia. If however you plan to stay in the USA for the foreseeable future, then irrespective of how overvalued/undervalued you perceive the currencies to be you should keep the bulk of your investment dollars in the USA.

While it is probably true that the AUD is undervalued against the USD by something like 10-15%, this may not materially change within the next two years. In fact given the recent momentum, it is quite possible for the AUD to fall below 50 US cents, before it begins its recovery. In my long experience, betting on shorter term (less than 12 months)currency movements is very dangerous.

Goo luck with your deliberations.

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