As the Australian dollar soars after the Easter weekend break past US$1.08 it is worth a reminder that this is the US$ falling, not the A$ rising. The cross rates against other currencies have been more or less unchanged.
There seems to be a mix of drivers. On the one hand, investors are dropping the US$, perhaps over inflation fears, while expectations of improved global growth have increased the appetite for high-risk high-interest-rate currencies such as the A$. Indeed, if you want a safe currency offering a high interest rate, what else would you buy but the A$?