Fundamentally and technically the Australian dollar looks good to great when compared to the US dollar.
Kathy Lien at Seeking Alpha describes the AUD as being in the buy zone. I agree.

Australian’s are starting to ask “What recessions?”

• Petrol (gas) and mortgage cost are way down.
• The Australian government is handing out money hand over fist to both business and individuals.
• There still isn’t enough housing supply.
• Substantial investments in Infrastructure have been happening for more than a decade.

Things are actually up for most people. While the media bangs on about the global recessions the reality is most Australian have more cash now. The Australian economy is likely to lead the US out of recessions as commodities will be one of the first asset to re-inflate.

As the first comment in the above SA article points out the Australian housing market is still overpriced and there are other risks. Investments without risk and with good returns don’t exist. Australian’s are tightening their belts, retail is down. Commercial real estate is looking shaky and if that falls average residential will come down too. High end residential is already down.

Remember it was only a few months ago everyone was sure parity and above was imminent and sustainable. If anything the arguements from back then are truer today.

Now saying all that I don’t trade FX markets. Though I did recently opened a demo account to get up to speed with FX trading.

Related posts:

1. U.S. Dollar Facing Imminent Collapse
2. USA: Is it really number one?
3. Some good numbers
4. Housing tipped for price implosion
5. Bubbles Always Pop
6. Hussman Funds Weekly Market Comment