PERTH: The Australian dollar has prolonged despise behind its falls in recent days, staying below the US84c mark with the stress on the downside.
At 4pm (AEDT), the local unit was trading at US83.70c, down from US83.79c yesterday.
The currency has plunged 1.4 per cent this week after several economists changed their forecasts to include a Reserve Bank interest rate cut next year after disappointing September quarter economic growth figures.
The futures market is now pricing in, or betting on, a 27 per cent chance of a rate cut in early 2015, up from a 2 per cent chance on Monday.
Commonwealth Bank chief currency strategist Richard Grace expects the Australian dollar to head below US80c in the coming months.
“The risk is that it will happen sooner rather than later,” he said.
“Slower global growth, downward pressure on commodity prices and Australia’s falling terms of trade, these factors are all putting downward pressure on the Australian dollar.”
The CBA at this stage hasn’t changed its forecast to include an interest-rate cut.
The US releases official employment figures for November tonight, Australian time, but Mr Grace says it shouldn’t have too much of an impact on the Australian dollar.
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