Policy Blunted in Australia as Currency Ignores RBA Cuts: Chart

The latest round of rate cuts from the Reserve Bank of Australia (which releases meeting minutes on Tuesday) hasn’t put much of a dent in the currency, with the Aussie dollar trading just about where it was in April before the two reductions began. One pillar of support: Investors seeking yield as sovereign and corporate bonds from Japan to Germany turned zero or negative. Analysts expect exchange rate declines will eventually come, with the Aussie seen dropping to 73 U.S. cents by December, according to the median estimate in a Bloomberg survey.

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