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Australian dollar has yet to find a floor

Our view that the annual rate of GDP growth in Australia will slow further in the second half of the year suggests that the Australian dollar may yet weaken from its current six-and-a-half-year low of US$0.70 to US$0.65, if not to US$0.60. This would especially be the case if we are right in expecting the Reserve Bank of Australia to cut interest rates further, from their current level of 2.0%. 

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