The fact that the Australian dollar has fallen more than 8 percent against the U.S. dollar from an April high could be reason enough for the Reserve Bank of Australia (RBA) not to cut interest rates again this year, say strategists.
“The RBA’s biggest concern recently has been that the Aussie dollar has been as high as it has been, so some depreciation of the Aussie dollar is going to make the RBA feel a lot more comfortable,” Paul Bloxham, chief economist for Australia and New Zealand Bank told CNBC Asia’s “Squawk Box.”
Up until, two weeks ago the Aussie dollar had held firmly above parity with the greenback before being knocked down by a broadly robust U.S. dollar, a fall in commodity prices and signs of weakness in China – Australia’s biggest trading partner.
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