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A prominent Asian currency strategist warns the Australian dollar could fall to US62 cents if the US dollar loses its high-yielding status. The yield gap between 10-year US and Australian government bonds has narrowed to under 30 basis points, its tightest in about 15 years.
The Reserve Bank is expected to keep its cash rate at 1.5 per cent.
A narrowing rate advantage weakens the Aussie, which tends to support Australian export competitiveness and affects dollar-denominated grain and feed import costs for Australian buyers. The effect on feed prices is indirect.
afr.comMyriam RobinApr 27, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
