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Trade war, the dollar and the RBA

The combination of the escalation in global trade tensions and some dovish developments at home have dragged down the Australian dollar to a one-year low of US$0.74. We suspect it will weaken further to US$0.72 by the end of the year. And if the US-China trade spat worsens, the dollar could easily drop to US$0.70 or below.

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