Aussie dollar to fall to 75 cents?

From SMH:

"More bears have joined the downgrading party against the dollar, with a major investment bank expecting the currency to fall to US75¢ in 12 months as enthusiasm for what was once dubbed the ''Goldilocks economy'' grows cold.

While the dollar has fallen more than 13 per cent against its US counterpart since mid-April, Credit Suisse analysts said on Thursday they expected it to slip further to US87¢, a level it has not seen since July 2010.

The analysts forecast the dollar to drop to US75¢ in 12 months. 

''Our feeling remains that either the dollar will continue to fall naturally or the RBA will need to give it another push with a further interest rate cut,'' Credit Suisse said."

Markets are pricing in a 47% chance of an interest rate cut on August 6 - those odds look too low to me at this distance.


In forecasting news of a different kind, the long range weather forecast for England for the remainder of the month is for hot weather, which bodes well with Britain's Andy Murray in to the final four at Wimbledon and the Ashes cricket starting next week.

It's a sticky 24 degrees here today - and a lot warmer than that sounds!

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