The fuel for the rally in AUD has been the boom in mining investment. It has as created a great deal of temporary construction jobs and a considerable amount of permanent work. But mining employs just 200,000 Australians while 1 million work in manufacturing.
Layoffs announced today highlighted the precarious state of manufacturing, which the head of the workers union says is facing the worst crisis since the Great Depression.
AUD may have room to run higher in the near term but it’s impossible for me to imagine AUD/USD above 1.10 for any length of time.