More all time highs this week for the Australian dollar against the US currency.

According to the AMP's chief economist and strategist, Dr Shane Oliver, we are going to have to live with a strong currency for some time to come.

He makes the very pertinent point:

"The strong Australian dollar will likely cause more pain for internationally focused Australian companies that don't have a natural hedge in the form of higher commodity prices like resources companies do.

"However, on balance a strong $A is positive for the Australian economy, and is part of the adjustment made necessary by strong demand for Australian raw material exports.

"It's worth bearing in mind that strong and successful economies tend to have strong currencies.

"If a weak currency was the way to permanent prosperity then Bolivia and Zimbabwe should be topping the world per capita GDP tables, which they clearly do not!"

After being stuck in a narrow range around parity against the $US since last October, the Australian dollar has reached a new 29 year high.

The strength in the $A reflects renewed $US weakness, strong commodity prices and relatively high Australian interest rates.

My view for some time has been that having breached parity against the $US, the $A would head to $US1.10. Allowing for usual currency volatility this still seems on track.

The bigger picture - a falling $US

First, to the US dollar. A major part of the Australian dollar's strength over the last decade has been the downtrend in the US dollar.

After a pause this appears to be resuming.

Further $US weakness is likely.

The US Federal Reserve is signalling no urgency to raise interest rates at a time when other central banks are either lifting interest rates or contemplating lifting them.

In addition, rising global investor confidence is reducing demand for the US dollar as a "safe haven".

The converse of US dollar weakness is renewed strength in a range of other currencies:

The euro is looking stronger on the back of European Central Bank (ECB) talk of a rate hike, and confidence