Do you think the Australian Dollar will reach parity with the US Dollar before Christmas?
No, it does not. Australian dollar will follow the pound and the Euro to get stronger, while the dollar will get weaker.That’s the reason why the FED is keeping the fund rate approaching zero still, and probably over Christmas. The weaken dollar is good for the the US economy which has a very slow growth. Australian economy is on the contrary very strong. The exports to China will get stronger and growing. There is no reason to come to parity with the US dollar.
