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If Robert Gotliebsen is right, the theoretical settling price for the Australian Dollar would be US$1.80 given the central bank interest rate differentials.
This would really put a severe kick in the teeth of the Australian resources sector as well as offshore revenue companies and exporters. This could place severe pressure on Australia's economy in the long run and run it into a long and vicious recession.
I reckon we should all have a strategy with this a distinct possibility.
There appears to be no relief until the US central bank starts raising rates. Then there will be a initial shock fall of our currency. Then the little batller will hit the ski slopes again and slide further and further and further down until this cycle is over and then our dollar starts recovering again.
