Australian Dollar Free-Fall due to Deficit
Flynn said the level of Australia's net foreign debt is ``a risk'' to the country's top AAA credit rating.
The Reserve Bank, which meets today, will probably raise its overnight cash rate target for the first time since December 2003, by a quarter-point to 5.5 percent. The bank announces its decision today at 9:30am Sydney time.
With Australian interest rates very high and set to increase further after today's meeting of the RBA, the Australian dollar could inflate a little more before the inevitable free-fall toward 70 cents.