There was a period last year when no negative news would have any effect whatsoever on the AUD and that seems again to be the case. The AUD/USD is back above .9900 despite more headlines about the mining tax, a potential military conflict in Asia and a moderately resurgent USD. If a currency ignores normally bearish factors then selling it is probably going to be an expensive exercise.
I don’t really understand why the AUD is strong, in fact Deutsche put out a research piece saying that the AUD is one currency to avoid, but the market is currently giving a different signal.
