The Australian dollar may be at a five-month low as China’s growth slowed and lower interest rates reduced the appeal of the currency, but Aussie bulls aren’t ready to throw in the towel just yet.
According to Andrew Freris, BNP Paribas Chief Investment Advisor for Asia, the currencyis “significantly oversold” and is still the best currency to own among all the Group of 20 nations.
“I’m really genuinely upset it’s hitting one (to one with the U.S. dollar),” Andrew Freris, BNP Paribas Chief Investment Advisor for Asia, told CNBC Asia’s “Squawk Box”.
“Whatever happens, even if the Reserve Bank of Australia (RBA) cuts again another 50 basis points, the Aussie is the only G20 currency that would still give you nearly 3 and a half percent overnight.”
Australia’s interest rates currently stand at 3.75 percent, which gives a more attractive return than rates in other major economies. Benchmark interest ratesin the U.S. are at the zero to 0.25 percent range, and rates in Britain and the euro zone are at 0.5 percent and 1 percent respectively.Page 1 of 3 | Next Page