How Low Can The $$$ Dollar Go?

The Australian dollar fell to a 10-month low this week after the US central bank told us what we already knew - that the US economy is faltering.
But how low could the Aussie go if we got some news that is not only bad but also unexpected?
At the height of the global financial crisis in early November 2008, the Australian dollar lost almost 40 US cents in a matter of just over four months.
OZForex senior foreign exchange manager Jim Vrondas thinks we could be on the verge of something similar.
He said investors were worried that the US could soon end up in a recession, reminiscent of what Japan experienced in the early 1990s.
This could drag the Australian dollar to 80 US cents by the end of the year, he said.
'The dream run could be over,' Mr Vrondas said.
'We're getting a sense that what's going on in the market in the last 24 to 48 hours does very much feel as it did back in 2008.
'There's a chance that we could see that happen where we have a long period of very slow or negative economic growth out of the US.'
Commonwealth Bank currency strategist Joseph Capurso is tipping the Australian dollar will recover towards parity by the end of the year.
He said it was unlikely that the Australian dollar would lose 40 pips, as it did in 2008.
'In 2008, in periods, there was no volume because people were not taking a position - they were not trading,' he said.
'That's simply not the case this time around and I think that's a much better situation.'