The Australian dollar needs to decline to around 85 US cents before it becomes a tailwind

The Australian dollar needs to decline to around 85 US cents before it becomes a tailwind. Overnight the AUD dropped around .6 of a cent to 90.98. That's its lowest level since March 2014 and might put a smile on faces in Martin Place, where the Reserve Bank is looking for a lower dollar to lift exports and make managing the end of the mining boom a little easier. The dollar is now comfortably through the 92 level it's been flirting with for around six months. The key question is how low will it go given that: 1) The US Fed is likely to tighten rates in the next nine months, making the US dollar more attractive. 2) The RBA is on hold so the interest rate differential will work against the Australian dollar. 3) Commodity prices are declining and that will also push our dollar down. (VIEW LINK)