The knives are out for Julia Gillard.

Julia Gillard is holding on by her fingernails, furiously trying to lift Labor’s vote by convincing people the costs of the carbon tax will be offset by government handouts as she fends off a growing view she should be dumped before July 1.

Politics hasn’t been an Australian dollar driver in recent years but if Gillard gets turfed the carbon tax debate will be re-opened and the Aussie will take notice.