Today i saw a interesting article where the RBA secretary explained the AUD might rise sharply purely due to hot money in asia looking for safe havens. This he explained would not reflect the fundamentals of the currency prompting intervention in the FX markets. I actually remember the RBA in 2009/2010 making the same statement around FX intervention. This could really only come in the form of expansion of the money supply i believe as the RBA has no chance of fighting the FX markets(selling AUD into markets to lower the currency). It should be noted that the SNB(Swiss national bank) have tried this to peg their currency to the EURO for the same reason, speculative hot money looking for safe haven's and it has been a total failure. I wonder if the RBA are expecting some gradual climb of the AUD or some overnight rush into safe haven's. Whichever happens there does seem to be the continued possibility of RBA expanding the money supply.