The Reserve Bank seems not to be happy about the high exchange rate as Glenn Stevens, RBA governor, has recently complained that it is affecting the non-mining parts of Australia's economy. If the recent presumptions and apprehensions prove to be real, the Australian dollar is all set to fall below 90 U.S. cents. What is worse is that the AUD may stay low for quite a while.

The economic stimulus programme of the Federal Reserve of the U.S. on Thursday might have left Mr Stevens even more worried. Andrew Barnett, LTG GoldRock director, informed that the announcement by the U.S. Federal Reserve had already reinforced the greenback. It has also caused most of the major currencies in the world to lose value. Those include the Australian dollar.

Mr Barnett said that the Fed announcement had become a 'game changer' when it came to the Australian dollar, News.com.au reports. He further added that the Australian dollar might see the lowest points of 2013 before Christmas if the U.S. Federal Reserve decided to start tapering in December. The lowest point of the Australian dollar so far in 2013 was in August when it fell as low as 88.38 U.S. cents. According to Mr Barnett, the Fed seems to be controlling the Australian dollar more than the RBA.

In the last couple of years, the AUD was above parity with the USD. It happened mainly due to two major reasons. Firstly, the U.S. dollar became extremely weak in the last two years. Secondly, the commodity prices reached its highest point in the last 150 years. The RBA governor gave the indication on Thursday that the Australian dollar was above levels at the moment.

Nov 25 Forecast for AUD

According to ForexTV, AUD is expected to go further down with 'high volatility' on Nov 25. There was a high point of 0.9447 on Nov 19 and then there was a landslide until Friday to 0.9142. It finally closed at 0.9165. The entire holiday week is expected to see much volatility.

Nov 25 is expected to see the perfect pattern of head and shoulder while keeping a weakened right shoulder. The tendency will be strongly bearish.