Australia dollar dives to five-year low as markets bet on big rate cuts


SYDNEY: The Australian dollar dived to five-year lows on Monday, slammed by fears that a tit-for-tat global trade war would send the global economy into a recession, which had some traders bet on outsized rate cuts Down Under.

The kiwi is in focus this week, with the Reserve Bank of New Zealand due to meet on Wednesday against the backdrop of heightened global uncertainties. Swaps imply there is a 22% probability that the RBNZ can cut by 50 basis points for a fourth straight time.

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Australia , dollar , tariffs , RBA , RBNZ

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