THE NEWS WRAP: Australian dollar reaches parity with the US dollar

As expected, the Australian dollar reached parity with the US dollar, hitting US$1.0002 on Friday before closing at US$98.90 cents. 

Analysts are divided over whether the dollar will hit parity again this week, while treasurer Wayne Swan has ruled out the possibility of devaluing the currency.

Meanwhile, the Australian Financial Review has reported that consumers, holidaymakers and small businesses have taken advantage of the situation by stocking up on their reserves of the US dollar.

Ad spending up

Australian businesses are spending more on advertising in the wake of the GFC, with firms tipped to spend around $13 billion in 2011. The total, up $800 million on this year, is a further rise on the $1.3 billion extra spent this year.

OHS row escalates

The row between Julia Gillard and NSW premier Kristina Keneally has heightened, with the Prime Minister claiming that a broken workplace deal will cost the state $144 million over the next two years.

Keneally has backed out of an agreement on OHS reform that has led to severe criticism from federal government, as well as NSW business group.

Board remuneration under scrutiny

Things may be tough for many start-up businesses, but it’s unlikely that any of them will have to face the upcoming backlash of shareholders against executive pay. Many of Australia’s top listed companies are anticipating investor ire over pay, putting pressure on them to restructure pay plans.