SINGAPORE: The Australian dollar on Friday hit a near-six month low against the Singapore dollar as investors bet on interest rate cuts by Australia's central bank following soft domestic economic data.
The Aussie dollar slipped as investors bet that aggressive rate cuts would be needed to support the economy in the wake of soft domestic data and the fallout from the US-China trade standoff. Bond futures imply a 66 per cent probability the Reserve Bank of Australia will follow up its recent quarter-point easing with another in July. If not, a reduction to 1 per cent is considered certain by August."Rising interest rate cut expectations thanks to weak data has fuelled weakness in the Australian dollar with trade tensions also weighing on demand," said Manuel Oliveri, an FX strategist at Credit Agricole in London.
6-month low...?!? I think you'll find that if you check the records, the AUD has sunk to a 10-year low against the SGD.