Will AUD/USD break the 1.0x barrier?

Question

With the continual credit quagmire in the United States, and continuing woes about The Two Macs. The U.S dollar is set to weaken so gold is performing strongly (basic hedge against inflation), do you think this is going to stronger demand for currency of major gold producers like South Africa (not a major currency) and the Australian Dollar (AUD)?

Will these factors push the AUD above parity with the USD or with the market psychology stop this from happening since nobody would believe it can actually last?

Answer 1

yep i think it will happen. It happened back in '84 so there is no reason for it not to happen again. It will only take a 3cent increase for it to happen and the credit crunch in the states is only getting worse not better.