Return of Volatility- $A no longer considered safe bet

The zombies have hit the streets in the US to protest the protection of the financial markets whilst the ordinary citizen receives little support. There are no zombies in Australia (yet) in fact normality has returned.

In what is a return to normality for the $A it has fallen to 95c/US. (this is fall of 13%) Ironically this is due to the concerns with the European markets and failing US economy as investors have dramatically left so called risky currencies for the 'safety' of the US$.
This is despite the solid news regarding the Australian economy. In summary the information that has surfaced in the last week;
# The Trade surplus is the second highest on record at $3.1 billion.
# Building approvals have improved signalling increased confidence in the domestic economy.
# The terms of trade have continued to rise (highest in 140 years) Chinese manufacturing continuing to expand.
# Despite the EU market voting to allow stability expenditure of E440 Billion contagion in the European market continues with Greece close to default, previously Portugal, Spain and Ireland have been mentioned as having financial risk. The risk has now spread to Italian and French banks.
# Protests regarding corporations being saved whilst people continue to lose their jobs spread across the United States.
# News of global financial issues has meant that the RBA is now preparing the market for a cut in interest rates. Interestingly 'jawboning' regarding a cut in interest rates will mean the $A will fall further which will be positive news for sections of the Australian economy.