Big slide for Aussie dollar unlikely Taper time has finally come in the US, fanning the RBA's hopes that a strengthening greenback will drive the local currency further down, which would help the economy's transition away from mining-led growth. Businesses outside mining have struggled to adapt to the higher Australian dollar in recent years, which has dramatically decreased competitiveness by pushing the price of exports higher. Some sectors, including retail, have suffered the double blow, with consumers using the higher dollar to source cheaper goods from overseas. Mr Elmer said that further rate cuts would be considered by the RBA in order to push the Australian dollar lower, because the US Fed was remaining relatively benign. Westpac chief currency strategist Robert Rennie, while not bullish, doesn't see the Aussie slipping much lower because he doesn't expect the US Federal Reserve to wind up its bond buying quickly. "The tapering decision felt more of a legacy decision than an economic decision," said Mr Rennie. "It struck me that it was more about [US Fed chairman Ben] Bernanke being seen as both the architect of the Fed's liquidity policy and the person that began the tapering process and ultimately normalisation," he said. Mr Rennie said he expected the dollar to end 2014 at US88¢, trading as high as US92¢ throughout the year. Commonwealth Bank chief currency strategist Richard Grace said barring something out of left field he expected the dollar to finish 2014 at US89¢, after a fall towards US85¢ during the year. "We've seen an improving global economy and it's very usual for the Australian dollar to go down and stay down when the global economy is improving," said Mr Grace. CBA is also predicting the RBA will lift rates late in 2014, with the local economy muscling through the transition away from mining, putting upward pressure on the Aussie.