Dislikedin the last week I often said AUD would have gone down, it went up indeed but I am still with my opinion, a journey to 0,85 - 86 before a new rise would be in the cards
equities are now pricing a very strong recovery, next week many US companies release earnings, and even if positive tones should prevail, a "sell the news" pullback is to expect
gold at 1050 and S&P even above seem really very stretched up to me
in the last two sessions, talks of a 50bp rise during RBA november session gave more fuel to AUD, and less extension to the profit...Ignored
I read here in the newspapers that RBA wants to "slow" the appreciation of AUD, they are not "against" its appreciation. so IMO, they will sell at peaks slowing the pace of AUD appreciation.
Many economists are predicting that AUD will reach parity before Xmas (Optimistic) or in Q1-2010 (Realistic).
IMO, it would be like 2 step upwards, 1 step downwards type of journey from here on.
so it could potentially go down to .89 or 8850 but not much from there, IMHO.
cheers