aud now .8424, page-14

Lets keep Defab on the Piss everyone has the $$$ heading to 90c only problem with that is when everyone has it headingthee chances are it wont but I am hoping they are right.

Cheers
Hotlegs


AUSSIE DOLLAR / US DOLLAR

AUD/USD0.85520.0047+0.55%

Aussie Dollar - US Dollar

Dollar tipped to rise to 90 US centsSeptember 7, 2009 - 4:15PM .
Australia's dollar may rise toward 90 US cents as the pace of the nation's economic recovery and global stimulus measures prompt investors to buy higher-yielding assets, Royal Bank of Scotland Group said.

The so-called Aussie rose past 85.20 cents last week for the first time since September 2008 after a report showed the nation's economic growth unexpectedly accelerated last quarter. Group of 20 officials said over the weekend in London it would be premature to start unwinding record-low interest rates and more than $US2 trillion ($2.4 trillion) in fiscal stimulus.

''A generally weak tone for the US dollar, relatively strong economic growth in Australia, and a commitment to ongoing monetary and fiscal stimulus from the G-20 suggest the Australian dollar is more likely than not going to grind on into an 85- to 90-cent range,'' Greg Gibbs, a Sydney-based currency strategist at RBS, wrote in a note to clients today.

Australia's currency jumped in late trading on Monday, rising to above 85.5 US cents in recent trading, its strongest in more than a year.

The currency will find support at the upper end of its previous trading range at 84.80 cents, Gibbs said.

Australia's gross domestic product rose 0.6 per cent, the biggest gain in more than a year, from the previous three months when it grew 0.4 per cent, the Bureau of Statistics said in Sydney on Sept. 2. The median estimate of 20 economists surveyed by Bloomberg News was for a 0.2 per cent expansion.

Yield advantage

Benchmark interest rates are 3 per cent in Australia, compared with as low as zero in the US, attracting investors to the nation's assets. The premium Australian two-year government debt offers over similar Treasuries rose to 3.65 percentage points today, the most since September 2008.

``The Australian dollar has had the clearest and most significant rise in its yield advantage over the last month as the Reserve Bank of Australia has signaled a strong chance it begins to hike as soon as Oct. 6,'' Gibbs wrote.

Futures markets are betting on a 36 per cent chance of a rates increase when the central bank meets next month. Traders are certain interest rates will be at least 0.25 percentage point higher after the RBA meets in November.

Bloomberg News