A minority government may increase uncertainty and create some short-term volatility in the currency.

Given the drop in gold prices and base metal prices I would see the upside to be quite limited for the Australian dollar today.

We expect the dollar to remain strong in early 2006. (But) once the U.S. Federal Reserve finishes tightening, the risk is that external imbalances play a greater role in steering currencies, and in that latter backdrop, sentiment toward the dollar may deteriorate.

Higher U.S. interest rates will continue to support the U.S. dollar in the near term. We're still looking for U.S. data to remain firm, which will help the dollar.

There is little doubt that firms in the US have plenty of pricing power, given the continued strength of the US consumer.

Rate rises may make their way back on the agenda. The Australian dollar should benefit.

The ECB probably won't do very much, maybe one or two rate hikes, and if the Fed keeps tightening then the rate differential won't improve substantially for the euro.

I think that tug of war will just keep it in a range.

The chances of a rate hike will underpin the dollar. Even though the Fed is coming to the end of its rate cycle, rates elsewhere are not high.