The Australian dollar continued to tumble on Friday following a surprise rate cut from the Reserve Bank of Australia and strong unemployment figures from America.
After threatening to hit the US 80c mark the Aussie dollar has fallen sharply with some expecting the currency to hit the US70c mark in the nearest future on the back of Inflation downgrades from the RBA form 2-3 percent to 1- 2 percent.
Some analysts are even more bearish including Mark Walton, senior economist Asia ex-Japan at BNP Paribas who sees the Australian dollar even lower than US70c,
"I don't think there's a central bank on the planet that hasn't been surprised to the downside by inflation," he said.
"But judging by the RBA's statement on Friday, I don't think the bank is convinced the situation will improve of its own accord and as such our forecast is for US67¢." He added.
Data out of China early next week is likely to dictate the direction of the Aussie dollar with any bad news out of the world’s 2nd largest economy likely to see the Australian dollar sink even lower.
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