Py and Co,"So therefore, what we should be hoping for, is for...

Py and Co,

"So therefore, what we should be hoping for, is for the US dollar to remain weak"

Generally speaking with regards to the interest rate cycle, if a country reduces it's official interest rate (e.g. the US Fed keeping its official interest rate low), that country's currency will remain weak. The US Fed has indicated that their official interest rate will stay low for at least another six or nine months, while the RBA is on a mission to hit 5 - 5.5%, and thereby strengthening the AU$ against other currencies..

On top of that, the investment community in Australia has viewed the average AU$ against the US$ as being around 80c for the past decade or two. That said, it may be closer to 85c or even 90c with this second phase of the resources boom.

talktome