Economics
Bears Say 70 U.S. Cents Looms for the Aussie Dollar
- RBA to stay ‘on hold as far as the eye can see,’ Aberdeen says
- Aussie slid 2.3% in October, biggest monthly decline this year
Photographer: Brent Lewin/Bloomberg
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Short the Australian dollar as the extra yield on the nation’s bonds over U.S. Treasuries is about to vanish.
That’s the view of Aberdeen Standard Investments and AMP Capital Investors Ltd., saying the country’s yield premium will disappear for the first time since 2000 and may even become a discount. Disappointing economic data has spurred traders to push back forecasts for when the Reserve Bank of Australia will raise interest rates, sending the currency to three months of losses. The central bank kept its benchmark at a record low Tuesday.