The man who predicted the GFC says the AUD is about to fall 20%.

His name is Roubini and he is respected amongst banks, institutions and economists alike for accurately warning and predicting the Global Financial Crisis. He's now saying the Aussie Dollar is about to fall by as much as 20% in value from its current levels. If he's correct that would put the AUD vs the USD at around 0.72c. It is difficult to argue against him as the AUD seems to have a number of factors conspiring against it which I have been reminding you about for close to 12 months.

US interest rates are likely to rise and Australian interest rates are likely to remain on hold or even fall further. The Aussie economy has a lot of genuine question marks against it however other than interest rate differentials the bulls holding long AUD positions have one major factor to be concerned about. China and low commodity prices for the foreseeable future. Iron Ore is still hovering around $80 a tonne and is not expected to rally any time soon. China's housing and construction boom has slowed significantly and China's insatiable appetite for our commodities has slowed and thus commodity prices are significantly lower than they were at their highs in 2013. In fact if you consider Iron Ore was $140 a tonne in early 2013 and today it's trading at $80 a tonne. It’s no surprise this is contributing to the AUD demise.

Many small tier miners will struggle to even dig it out of the ground for that price and government tax revenues will be lower of course. Roubini says that Australia will struggle to grow at 2% next year and predicts interest rates to go lower than the current 2.5% level. If that was to be true and the US economy continues to grow at current rates and the US Fed puts interest rates up as predicted then 0.70c for the AUDUSD is certainly not out of the question.

The AUDUSD hit a fresh new monthly low of 0.8851 Monday with the 2014 yearly low of 0.8659 now less than 2 cents away. The AUD has dropped over 5 cents in value just this month and according to Bloomberg this makes it the worst performer amongst 10 developed nation currencies.

Andrew Barnett, LTG GoldRock reviews the latest Currency Trading News every day in the Goldrock Insider Report.