In the recent article “Parity under Pressure” we discussed the outlook for the AUD/USD pair. The turmoil in European markets at the moment has caused bond yields in France, Spain, Greece and Italy to spike dramatically. Fears of a fully fledged European sovereign debt crisis are triggering sharp falls in “risk on” currencies including the AUD which today (17/11/2011) touched a one month low of just $1.0022 against the USD.
It appears that the risks for the AUD are to the downside and commentators are tipping that the AUD will break below parity with the USD within days with one well known commentator suggesting a year end target for the AUD of USD$0.96.
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