In the world of currencies, particularly in the current environment, the U.S. dollar, British pound, euro and Japanese yen often command most of the attention.
However, investors should be mindful of the Australian dollar and the CurrencyShares Australian Dollar Trust (NYSEArca: FXA), which tracks the Aussie against the U.S. dollar.
Related: Aussie Dollar ETF Plunges as Reserve Bank Cuts Rates
While the Australian dollar, like other major currencies, is beholden to central bank policy, the good news for the currency and FXA is that some Australian officials do not see the Reserve Bank of Australia (RBA) engaging in another rate cut this year.
“Australian Treasurer Scott Morrison said he doesn’t see much appetite for further cuts to his nation’s already record-low interest rates, while stressing that’s a decision for new central bank Governor Philip Lowe,” reports Bloomberg.