Stupid Australian $

[Golden Phoenix]

Our dollar has managed to crawl its way back up to 70 US cents today, the last time that happened was January 7th and then it dropped back to the early 60s, overnight I might add. Stupid thing better maintain itself this time.

SHHHH. Don't jinx us

[JuzMel]

Yippie! Hope it keeps crawling its way back up!

[GoktimusPrime]

Ode: the Japanese economy's been going down the crapper for quite some time. They're in one of their worst economic slumps in the past 7 years. In spite of this the Japanese Yen is still very strong because so many investors see it as a 'safe currency.' Bad news for Japanese exporters though who (along with us) would be praying for a fall in the JPY!

[Ode to a Grasshopper]

I know, I know, I have a few economist friends from uni who explained it to me a while back. Figured all those beautiful Henkei made it worth mentioning after ages of 59 JPY/AU$ though. On that note...
Almost 70 yen/dollar, woohoo! I wants me some Cyclonus luvvin'...

[autobreadticon]

I reckon it can go above 72 USc , if Obama add. rescue plans starts injecting more funds into US Financial insitutions

[Adzma]

SHHHH. Don't jinx us

Too late, we're back to 69.

[G1Optimal]

Too late, we're back to 69.

It could be worse...
I remember it being around 47-49 cents sometime around the 90's

[Adzma]

It's true that it could be worse but that doesn't mean I have to like our current situation. *Howls at the moon* 98 US cents...

[STL]

I doubt the dollar can sustain heights above 70c. There's still a lot of bad news ahead and any turn around would be optimistic at best. One of the other problems is that the solution being touted by the US is a mere derivative of a policy already floated last year by the old administration. The irony of that is if nobody gave it much credibility last time, why now? Some questions that really need to be answered there.

Secondly, there's a large interest rate differential at the moment between Australia and other countries which is virtually zero. The forwards market is factoring in rate cuts already in Australia. The only reason our interest rates didn't go down last time was b/c the Reserve Bank, wisely I might add, thought it'd be best to hold back interest rates b/c if it exhausted all of its monetary polcy options early, it wouldn't have anything to fall back onto.

So yeah, I don't think its sustainable. Unless of course, the US is already on its comeback which a few prominent US investors are suggesting. Personally, I think they're over optimisitic. There's still questions about a lot of fair value valuations on balance sheets as well. If there are write downs, again, not a good sign.

[GoktimusPrime]

I think the Australian dollar could sustain around 70-something USc but not much more than that.