I don't understand the US recovery, but the facts are, its happening and the tapering has begun, and despite predictions of it causing a collapse, it seems things are going along like nothing really ever happened.
I infer from that the tapering will continue. As it does, the US dollar will increase and the Aus dollar won't need the RBA to jawbone or pull levers to get it down.
Few would argue that the RBA would no longer be caught between the rock and the hard place that has paralysed it in recent meetings, and the next move would undoubtedly be up.
I honestly don't know what the dollar will do, to me rates could cut twice or lift twice this year, but it seems to me from listening to the RBA the dollars the only thing keeping rates down at emergency levels.
