Hey Caylus, in the following Bloomberg video Nouriel Roubini...

Hey Caylus, in the following Bloomberg video Nouriel Roubini explains that the likely IMMEDIATE action on Monday will be a sell-off in the stockmarkets in anticipation of a higher probability of US Recession

http://www.bloomberg.com/video/73606936/

Let's face it: US Gov't spending has been enormous and has tried to substitute the collapse in Private Demand. Now that S&P have downgraded US Gov't Debt, there is a greater requirement for AUSTERITY and thus a further contraction in Gov't spending. Not a great thing when the Gov't spending is making up for the collapse in Private Demand...

So in summary - expect $US to be strong in the immediate short term as volumes of money rush into short term US Treasuries.

My guess is that once the dust settles $AUD will regain favour in Global markets because AAA Credit Rating & High % rates (and great Integrity)