‘Wobbly foundations’: $A hits two-month low

News Snapshot:

Last week, Westpac lowered its $A forecast to US67¢ by September, from US69¢ previously, and predicted the next move by Australia’s central bank would be a rate cut. Fed futures imply a 13 per cent chance of a Fed rate increase in September, rising to 34 per cent by November to a range of 5.5 per cent to 5.75 per cent. A fully-priced rate cut is not expected in the US until May next year. In Australia, bond investors ascribe a 45 per cent chance of another rate rise by the RBA to 4.35 per cent by the end of...