The Australian dollar was higher at noon and well on its way to parity with the US dollar, as fears grow the US will renew its quantitative easing program in the coming weeks.
At 1200 AEDT, the Australian dollar was trading at 98.73 US cents, up from Friday's close of 98.19 cents. In morning trade, the unit rose above 99 US cents for the second time in five days.
Since 1700 AEDT on Friday, the "Aussie" has traded between 99.07 US cents and 98.09 cents.
Commonwealth Bank currency strategist Joseph Capurso said he expected the Aussie to break parity with the US dollar by week's end.
That would mark an historic 27-year high with the unit, which hasn't passed one US dollar since it was floated on December 8, 1983.
"I think we will get to parity this week," Mr Capurso said.
"We have eight US Federal Reserve speakers in the US this week.
"We think they are going to talk about quantitative easing, and that will put downside pressure on the US dollar this week ... so you will probably see the Aussie push up."
Quantitative easing is where the Fed buys up US treasuries so as to increase the supply of money in the economy.
It was used by the Fed in 2008 as a response to the global financial crisis.
Among those speaking this week are Fed chairman Ben Bernanke, who is to give a speech called `Monetary Policy Objectives and Tools in a Low-Inflation Environment' on Friday.
He will be speaking in Boston, Massachusetts, at a Federal Reserve Bank of Boston Conference on Revisiting Monetary Policy in a Low-Inflation Environment.
With no significant domestic data due and the international data-scene quiet for the week, Mr Capurso said he expected the unit to grind higher.
"The only thing that might spoil the parity march is if the Bank of Japan come in and start buying US dollars," he said.
