Risk aversion is the name of the main game and profit taking is the secondary element in these thin December markets. Both of these factors will weigh heavily on the AUD and despite the interest rate advantage, the Aussie will probably continue to struggle against the JPY in particular but also against the Europeans. AUD/USD has posted a technical top now at .9410 and .9325 and a break below .8900 would probably see some longer term accounts start to book their profits. In my opinion, the AUD/USD could easily fall to the mid .80’s and nothing would really have changed in the world.