pwillow - Correct me if I'm wrong but isn't much of the Forex...

pwillow - Correct me if I'm wrong but isn't much of the Forex market is based on speculators rather than actual flow. Traders know that if news come out that the RBA increase interest rate, the natural reaction of the market is to push the AUD up higher base so they place their bet that way thus pushing it higher. This is based assumption that people will put more money into AU, whether or not this actually occurs is another matter.
A bit like the theory that US market is being push up/down because of the dollar. Equities traders see the dollar goes down, they know that the current market behaviour is to trade against the direction of the dollar so they make bet that way and if enough traders do it than the equities goes up.