The sellers keep coming for the Aussie dollar.
After Deutsche Bank added its voice to the recent bearish outlooks for the dollar with a forecast of 60 cents by 2017 the sellers have been lining up in Asian trade again today.
That’s seen the Aussie lose half a per cent against the greenback since 7am today and it is currently trading at 0.7293 after making a low of 0.7287 a short time ago.
Key the Aussie’s troubles, and why forecasts are being downgraded, is the change in the RBA’s outlook for inflation and what that means for interest rates.
Overnight CBA chief economist Michael Blythe forecast RBA cash rates to fall to 1.25% this year. That came a short time after JP Morgan said rates will fall to 1% while Deutsche bank as part of their downgraded forecasts also said they expect rates in Australia to fall to 1% as well.
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