''In May 2001, the Australian dollar traded at a record low of US$0.4773,'' wrote Stephen Koukoulas, currency strategist at TD Securities. The currency is now double that.

Back in 2001, Mr Koukoulas noted, interest rates were being cut, commodity prices were sluggish, and the Howard Government had delivered an uninspiring budget.

"Exactly seven years on, commodities are booming, the RBA has hiked rates in the middle of a credit crisis, the government has delivered a reasonably sensible budget and everyone loves the Australian dollar,'' he wrote.

The changes in fundamentals have put wind at the back of the Australian dollar even as the US dollar struggles to retain power.

For Australian consumers, that means it's a good time to buy imports goods or to travel. Especially when buying or exchanging into US dollars.

"The positive influences have swamped the negative factors and there remains a risk the Australian dollar being supercharged to $US1 and beyond,'' he wrote.

This morning's 24-year high comes less than two weeks since Westpac forecast the Australian dollar would reach $US1.01 by the start of next year as interest rates in Australia stay high and the benefits of the resource boom remain strong in the economy.

Although not willing to commit to a date for achieving parity, HSBC head of global markets, Tony Cripps, said there was "no reason it couldn't trade through parity".

The current conditions are similar to the 1970s, the last time the Australian dollar traded over $US1.

"Just because $US1 seems big, the Australian dollar has been there before," Mr Cripps said.

"The trend is definitely going to be staying up," he said. "The interest rate differential against the US is the highest since the late 1980s and early 1990s."

However, Mr Cripps noted that back in the 1970s, the Australian dollar wasn't free floating; its exchange rate was fixed.

Economist Damien Boey at Credit Suisse said he thought the Australian dollar can stay high "and possibly rise further" if China can keep inflation under control.

"A lot more tightening is needed by Chinese authorities to cause commodity prices and the Australian dollar to fall outright," he said.

"Some of this tightening will be imposed upon the Chinese economy by (developed economies) as the credit crunch affects demand for Chinese exports and investment flows into China," he said.

"But Chinese authorities themselves have a role to play in keeping a lid on commodity prices, particularly as inflation is now a problem.

"From the RBA's perspective, the strong Australian dollar is probably a favourable development at the margin as it will help contain imported goods price inflation."

The higher Australian dollar makes Australian manufacturing exports more expensive for customers overseas. The pinch has been felt by the Australian car industry, which is seeking relief from the government amid a rockier market.

The industry has called on the Federal Government to boost its main assistance program, pause tariffs on imported cars and put more money into its $500 million green car innovation fund, The Australian Financial Review reported today.

The Federal Chamber of Automotive Industries (FCAI), which represents Ford, Holden and Toyota, said that while the market share held by Australian manufacturers had fallen to about 19%, with the "right policy setting'' the industry could meet the challenges it faced.

FCAI chief executive Andrew McKellar told the AFR "the review comes at a critical time for local car makers".

"They've had to contend with rising fuel prices, the strong Australian dollar and significant changes to buying patterns," Mr McKellar said.

But Ms Auster of ANZ said several Australian exporters "have been increasingly used to this high Australian dollar environment" and have hedged their exposure to it.

The trend has limited the impact of the surging Australian dollar on profits of non-commodities exporters.

However, Ms Auster does not share the view that the Australian dollar will hit parity or exceed it.

"The Aussie dollar would have to break through quite a lot of resistance to get through to parity," she said.

"There are a few things that could create that momentum. But a number have already happened and the breakthrough hasn't occurred," she said.