# 'Be careful what you wish for': RBA could cause Aussie rout

> 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.

- Date: 2017-04-27 · published 2017-04-27T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/71761-be-careful-what-you-wish-for-rba-could-cause-aussie-rout
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

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.

## Read by commodity

- AUDUSD: bearish ▼

## Sources

- afr.com: https://www.afr.com/markets/equity-markets/be-careful-what-you-wish-for-rba-could-cause-aussie-rout-20170427-gvthj0

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.