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Australian Currency Crisis: RBA will succumb to lowering interest rates, 60% chance. Australians in Trouble.
The nation’s currency declined against its 11 of its 16 major peers as Australia’s two-year bond yield premium over that in the U.S. fell to its lowest since Nov. 1 last week. The median forecast of 29 economists is for the central bank to keep rates unchanged at 3 percent. The Aussie fell against the yen as a report showed house prices rose less than forecast, missing the estimates of all 16 economists surveyed by Bloomberg News.
“If the RBA cuts today, we’ll see a pretty big reaction in the currency with everyone pretty much sitting on the fence,” said David Greene, a senior corporate currency dealer at Western Union Business Solutions, a global payment services network. “We don’t think the RBA will cut as the economy seems to be going okay.”
