Australian Dollar's Surge Is Bringing Out the Bears
- Economy doesn’t welcome stronger Aussie, Aberdeen’s Athey says
- Schroder says RBA will probably keep rates at 1.5% this year
Photographer: Brendon Thorne/Bloomberg
This article is for subscribers only.
The Australian dollar’s longest rally in 18 months is bringing out the bears.
The Aussie is poised to go into reverse as the Federal Reserve keeps raising interest rates, while the Reserve Bank of Australia leaves borrowing costs at a record low, said James Athey at Aberdeen Standard Investments in London, who is adding to his short positions. Schroder Investment Management Australia Ltd., which is also short, said the Aussie is likely to trade closer to 70 U.S. cents than 80 cents in 12 months.