The Australian dollar is set to fall sharply despite a spectacular rebound over the past week as the raging trade war between China and the United States threatens to plunge the world economy into recession.
The local currency has rebounded more than US4¢ to US63.43¢ after sinking to near US59¢ just last week amid concern about China’s outlook. But Commonwealth Bank has warned that the reprieve will not last because Beijing is on the cusp of depreciating its own currency to boost exports.
