Interest rates don’t affect the currency. The RBA has no control over the currency. Nobody can forecast currency movements.
On the excuses ran for years and years of macro mismanagement and hollowing out of the local economy. Well, guess what, they were all bullshit and today we have the proof.
As markets embrace imminent RBA rate cuts, supported by a commitment to macroprudential tightening, the Australian dollar is in free fall, down 2% last night to the low $77s.
