Australian dollar to slide to 65 US cents in 2019, says Morgan Stanley
Australia's dollar is set to fall to the weakest since the aftermath of the global financial crisis in 2009 as it loses its standing as a high-yielding currency, according to Morgan Stanley.
The Aussie will drop to 67 US cents in 2018 before retreating further to 65 US cents in 2019 as the nation's benchmark rate will eventually go below the Federal Reserve's, said Hans Redeker, the London-based chief global currency strategist at Morgan Stanley, the most bearish forecaster of the currency
As Australia's yield premium to the US. evaporates and becomes a discount, the currency will break its correlation with emerging-market peers, he said. The Aussie will underperform as developing-nation currencies continue to attract investors with "super attractive" real yields, he said.
"In the past, when emerging markets were doing well, people were buying the Australian dollar," Redeker said. "It is no longer going to work like this. We are going to see that break simply because there is no yield."
http://www.smh.com.au/business/markets/currencies/australian-dollar-to-slide-to-...So the massive debt, the repayments will spiral ... correct?
http://www.australiandebtclock.com.au/