In Reply to: oh posted by jobevn on Monday, 10. November 2008 at 01:22 Bali Time:
the AUD could go lower particularly with the RBA slashin interest rates.
Generally (and i say generally because last week is a mystery) when rates are cut the dollar drops and when it goes up so des our exchange rate.
This is because the higher the interest rate the more international investors make from investing in or parking money in our banking system.
The only thing holding our dollar atm is the fact that the US Fed is also cutting rates at similar although not quite so drastic proportions. When the gap between theirs and ours narrows, we will see further drops in the exchange rate.