Rate speculation this week has built up a head of steam. This will support the Australian dollar.

It's quite difficult to get bullish on the Australian dollar when the U.S. dollar is rising on interest-rate differentials.

The Australian dollar has underperformed because there is a feeling it's past its best days in terms of a high-yielding currency.

The Australian dollar has been dragged down by the New Zealand dollar. Both currencies may well go through several months of under-performance.

Interest rate expectations will continue to support the Australian dollar.