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In fundamental terms (Purchasing Power) the AUD/USD would be closer to current levels (80c) than the high 90ies of recent times. Any rate flucations are going to move above and below this point as sentiment and interest rates change.
Inflation is comparable between the two countries so there shouldn't be any expectation of a long-term decline in either currency.
I recently took some profits on AUD/USD, sold about 20% of my USD cash holdings (back into AUD) this week.
I'd love to hear from all those 'gurus' who told me I was mad for buying up USD over the last year.
