The rumour: Reserve Bank of Australia officials meet Australian main bankers (for lunch). As Australian banks will pass on hefty rates increase prior to the RBA meeting in November 2010. Yes Australian banks desperate to solve funding issues and maintain profit margins have been given a green light to raise rates and claim the billion/s profit on AUD parity.
A dovish RBA and silent Australian government will attempt to cap the AUD after parity. Successful? Unlikely.
The event that will send the AUD downward? The bursting of the Australian housing bubble
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