freebo

This move is pretty sharp, wouldn't be surprised to see a bit of a snap back at some point, so locked in a few $'s at todays rate.

freebo

The Euro mess may take a long time to sort out, and get a lot worse before it gets better.

Amazulu

Interestingly, GBP and AUD have gone down against the Euro.

Wol

Purleeze!

The Euro was always a political animal without any economic validity in the long run. You can't just cobble together a bunch of countries and expect a common currency to work without the strains getting worse and worse - which is now culminating in what we see: the Club Med countries pulling down the Northern taxpaying states.

All the posturing doesn't change the underlying insolvency of Greece and several others, and more importantly the inability or unwillingness of some to amend their ways.

As the Euro breaks up over the next month or two what is going to happen? The economies will be hit hard, the Chinese economy will unwind in relative terms and all of a sudden they won't be digging up WA nearly as much. So where will the AU$ go?

South.

77hil

The euro mess is only part of the reason for the sell off anyway. The US dollar is strengthening slowly so the Aussie dollar is being ditched.

jimbo_d

Why do you think the USD is strengthening? It's the reserve currency, so people sell the risky commmodity based currencies like AUD and buy USD. I'm quite sure that this will be over when either the Euro fails, or it is fixed, one way or another in the next month or so. It's like that couple of months in 2008 when the pound rallied against the dollar to 2.7 to 1 then fell below 2 to 1. And it is rather amusing people getting excited about a rate of 1.75 to 1, that's still a totally rubbish exchange rate.

77hil

I agree. 1.75 is still nothing to get excited about. I think people are just exited to realise that down is not the only direction. After a while people think that things will forever go in the same direction. I still think that we are a good 6 months to a year off the A$ going back to 2:1 to the £.

As for the euro situation being sorted out in the next month or so, I can see this playing out much longer than that. Things will still be volotile for quite a while I reckon.

Bermudashorts

Not excited, just optimistic. Nothing wrong with a bit of optimism.

ABCDiamond

Antarctica ?

Alfresco

If it got to $2.50 we could almost be mortgage free for the type of house went want.

It's dreaming I know.

freebo

I know all about dreaming...

Stu Ward

Starting to slip back again

xzibit

$1.7295 currently on xe.com. Has slipped a little, lets hope it doesn't keep slipping.

Lyx

1.7415 now................. ooooohh the drama of it all.

freebo

Rumour has it that the RBA stepped in to support the AUD yesterday I'll add the ref if I find it again.