Underperforming growth in China, improving economic conditions in the US, and the RBA’s recently announced cut in the cash rate to a record low of 2.75% have forced downward pressure on the Australian dollar – culminating in a loss of nearly 8% in value against the USD since mid-April. Crashing from its peak of $US1.10 in July 2011, the AUD has reached an 11 month low, with many analysts warning investors to brace themselves for further deterioration.
Bonds, Yields and Inflation: Why The Recent Bond Market Volatility Matters
In recent weeks, the prices of American and Australian government bonds have plummeted. What does all this mean for the wider economy? Join Pinidu as he explores the implications of this recent market episode on growing inflation fears, interest rates, and much more.