Those pondering the efficacy of the long CROC trade or doubting that RBA is likely to cut rates at consecutive meetings need only study the central bank’s recent history.

RBA’s benchmark cash rate was 4.75% in October 2011. The central bank unveiled 25-basis point cuts at two consecutive meetings later that year. From November 2011 to August 2013, on its way to the 2.5% interest rate, RBA cut rates at eight of 20 meetings.

Now 2.25%, Australia’s benchmark interest rate is not even half the 6% level seen in October 2008 and not even a third of the 7.25% rate seen in March 2008.

ProShares UltraShort Australian Dollar

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