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Hedge Funds Bet Aussie Will Be Scuppered by Sluggish Inflation
Australia’s dollar took a beating last week and worse may be to come in the form of quarterly inflation data due Wednesday. The currency slid about 1.5% over the five days through Friday as influential Westpac Banking Corp. economist Bill Evans brought forward his forecast for the next interest-rate cut to October, and Reserve Bank of Australia Governor Philip Lowe said he was ready to ease again to revive economic growth. The one-two punch put an end to a one-month rally in the Aussie and ensured the currency remained in a long-term downtrend, capped by its 200-day moving average. Slow stochastics, an indicator of ... (full story)