US Federal Reserve chairman Ben Bernanke is speaking later tonight and tomorrow and is expected to drop hints on a likely stimulus package which could propel the Australian dollar towards parity.
Bernanke, an expert on the Great Depression, argues the Fed exited stimulus too soon during the financial crisis and has suggested he wants to avoid repeating that mistake.
The main reason our dollar is so strong is the weakness in the greenback.
As a result, other Asian currencies are also being bought.
"As we have a situation where US authorities are looking to pump more and more US dollars in circulation, this will devalue the US dollar and certainly suggest the Aussie goes higher from here," CommSec Chief Economist Craig James told me.
Mr James says the Aussie dollar could go beyond parity.
"We think that once we get through parity the Aussie dollar will rise perhaps to $US1.02 per Australian dollar," he said.
