I don't see how the Australian dollar could drop to 70c within the next 7 months, but I'm not an economist. Any reason?
1. The Aussie dollar was down there before, infact down to 67c.
2. The wind has come out of China's economic sails.
3. The US economy is picking up.
4. The mining boom is near its end.
5. The Australian Government is in the red.
6. The RBA has hinted at more cuts, probably 3 more @ .25% this year.
7. AUS manufacturers and exporters, farmers, beef farmers and car makers are struggling.
8. Low company profits and smaller payee tax revenue has lowered government income.
9. Economists have been saying for several years that the AUS dollar is over valued.
10. Price of gold and other mining resources has been dropping. AUS dollar is closely tied to their price movement.
