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Banks at odds with RBA over declining Australian dollar

From theage.com.au

"The failure of US yields to rise in response to decent economic data does raise more serious questions about whether the US dollar is primed for a sustained rally, particularly against high-yielding currencies such as the Aussie," said Sean Callow, a strategist at Westpac in Sydney. "Over the next few months the Aussie will trend higher against the US dollar." Price disconnect Westpac predicts the Aussie will climb to US88¢ next month, from US86.11¢ as of 2 pm in Sydney. The currency is set to strengthen further to US90¢ in June and US92¢ at the end of next year, Callow said in an e-mail ... (full story)

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