bill might take notice of EZ interest rates. 10y Bunds (German Bonds) are ~.8%, that's point 8 of a percent.
When the ECB announces stimulus in Europe this year interest rates will fall further, like the US 10y Tbill did four years ago and it wouldn't surprise me if the 10yB fell to at or under 0%
Consider then how our 2.5% cash rate would look to Europeans seeking a safe return (any return) and the result then on our currency and our economy. Naturally what happens to the US interest rates will be interesting and if their rates don't go up much our AUD will become more valuable.
Glenn Stevens at the RBA would be watching in trepidation at the financial tsunami heading toward our dollar. There's only 2.5% between us and deflation.
The European markets are about to do something wonderful and dangerous. Hold onto your hats as the European chase for yield gets crazy.
