What RBA wants to see is non-mining businesses contribute to Australia. The reality is those businesses are doing just the opposite. Regarding non-mining growth, Bowe and Mead wrote: “Unfortunately, we have yet to see this process take place, with real growth in non-mining business investment actually contracting over the year to June 2013.”
That does not necessarily mean Australia is headed for recession, something it has mostly avoided for over two decades, but lack of non-mining economic contributions means RBA has to keep its hands on the rate-cutting knife. And that could be good news for the ProShares UltraShort Australian Dollar (NYSEArca: CROC), the double-leveraged inverse equivalent of the AUD/USD pair.
ProShares UltraShort Australian Dollar
ETF Trends editorial team contributed to this post.