During Tuesday’s Asian session, the Reserve Bank of Australia left interest rates unchanged at a record low of 2.75%. It was widely expected that RBA would do that, but many traders and market observers expect RBA will not leave rates at 2.75% for the rest of this year.
However, the weak Aussie could crimp plans for additional rate cuts. The Australian dollar is the second-worst performing developed market currency in the world this year trailing only the Japanese yen. EWA bulls may not want Rudd to remain in power for long. The last time he was prime minister the ETF lost nearly 29%.
iShares MSCI Australia ETF
ETF Trends editorial team contributed to this post.