# Interest rates may fall below US rates in 2017 — will the AUD slump? - ABC News

> NAB analysts say the Reserve Bank of Australia cash rate could fall below US Fed rates in 2017, a situation last seen in 1997-2001 when the Australian dollar fell to about 48 US cents. NAB doubts the Australian dollar would fall much below 65 US cents except in a US-led trade war.

- Date: 2016-12-30 · published 2016-12-30T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/73712-interest-rates-may-fall-below-us-rates-in-2017-will-the-aud-slump-abc-news
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [Barley](https://feedsoft.ai/c/BARLEY.md)

## Why it matters

Expectations of a weaker Australian dollar would make Australian grain and barley exports more competitive, which is bearish for global feed grain prices. The view is a forecast rather than a realised move, so the price effect is limited.

## Read by commodity

- AUDUSD: bearish ▼
- BARLEY: neutral

## Sources

- abc.net.au: https://www.abc.net.au/news/2016-12-30/rba-fed-cash-rate-aud/8154142

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