cyclichigh's - doin' it nude thursday, page-166

Will the Aussie fall below parity (noticeably) tonight?

From the WSJ:

SYDNEY (Dow Jones)--The Australian dollar was among the casualties of heightened risk aversion Thursday after another blow out in Italy's bond yields sparked worries that the euro zone may be ruptured in coming months.

Robust local jobs numbers helped the Australian dollar win some support but worries over Italy's future remains the biggest driver of sentiment, sending Australian bond futures soaring.

"Italy has gone past the tipping point," said Westpac FX strategist Robert Rennie.

At 0500 GMT the Australian dollar was trading at US$1.0149 down from US$1.0351. Against the yen, the currency changed hands at Y77.7935, down from Y80.29.

"I don't understand the logic of us being above parity," Rennie said. He argues the unit should be trading closer to US$0.9500.