Economics
Aussie Dollar Slides to 10-Year Low as Traders Bet on Rate Cuts
- Money markets are pricing in 70% chance of a September move
- Trade war concerns are driving easing in region: S&P’s Roache
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Australia’s dollar dropped to its lowest in a decade on speculation the central bank will follow its New Zealand counterpart in delivering a bigger-than-expected interest-rate cut.
The Aussie slumped as much as 1.2% to 66.77 U.S. cents, breaching the low of 67.41 cents set during the January flash crash. Australia’s three-year bond yield tumbled seven basis points to a record 0.631%, falling further below the central bank’s policy rate of 1%.