It was the property market which caused the GFC and it was also an overheated property market which blew up the Irish economy. Australian fortunes are also inextricably linked with the property market and headlines like this in today’s SMH might have our bubbles wobbling a bit.
The AUD looks like it will maintain strength against the USD over the coming months but, as negative economic headlines increase, the teflon currency may start to weaken against the European currencies in particular.