Aussie stumbles, yields at record low

The Australian dollar fell and bond yields slipped to all-time lows on Friday after Westpac predicted rates will be cut three times this year, more than the market's view for two easings. Going against the tide, Westpac Banking Corp chief economist Bill Evans - who carries tremendous credibility in the forex market for getting his calls right - sees policy easings in June, August and November.
The Australian dollar fell 0.3% to as low as $0.6880, drifting towards a 4-1/2-month trough of $0.6862 touched on Thursday. Expectations of more aggressive easing sent yields on three-year bonds to 1.091% while those on the 10-year paper skidded to 1.519%, also the lowest ever.
Across the Tasman Sea, the New Zealand dollar was barely changed at $0.6515, on track for its fifth straight weekly decline. New Zealand government bonds were slightly higher, with yields down about 2-3 basis points across the curve.