18/11/2011
CMC foreign exchange dealer Tim Waterer said the Australian dollar would stay below parity only if the negative headlines from Europe persisted.
"If we see, next week, a continuation of this trend in equity market weakness we could see the currency heading back in that direction of 97.50 US cents in the next week.
"Having said that, these sorts of trading conditions can result in a bounce. I think if we do see some better US (economic) numbers next week, then that could be enough to tip the currency back above parity again.
"It really depends on how long this current frame of mind lasts in the market.
"I would still favour a move back above parity, if and when we start to get some better numbers from the US, which may shift the focus from Europe and onto the states."
Easy Forex currency dealer Tony Darvall said it was only a matter of time before the Australian dollar dropped below parity with the greenback.
He said that if it did break below $US1.00 decisively there was not much stopping it falling below 98.50 US cents.
Source: http://www.businessspectator.com.au/bs.nsf/Article/Euro-debt-woes-bad-news-for-Aussie-dollar-NQ57G?opendocument&src=idp&emcontent_asx_currency
Local unit has dropped as much as 2.7% this week.
