Templeton Sees Aussie Drop to 60s as China Spurs RBA Cut Risk
- ‘Cuts are still potentially on the agenda’ in 2016, Beck says
- Aussie is this month’s worst-performing Group-of-10 currency
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Franklin Templeton Investments predicts Australia’s dollar will probably drop below 70 U.S. cents and its central bank is likely to cut interest rates again as Chinese growth slows.
The Aussie dollar will see “marginal weakness,” and a level around 70 or the high 60s would be appropriate, John Beck, a director of fixed income in London at Franklin Templeton, said in a telephone interview Wednesday. The median estimate of more than 50 analysts surveyed by Bloomberg is for this month’s worst-performing Group-of-10 currency to end the year at 72 cents, from 72.21 as of 12:05 p.m. in Sydney on Thursday.