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In 2019, an article in the Wall Street Journal noted: The Australian dollar declined 0.4% against the U.S. dollar... after Reserve Bank of Australia cleared

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In 2019, an article in the Wall Street Journal noted: "The Australian dollar declined 0.4% against the U.S. dollar... after Reserve Bank of Australia cleared the path to an interest-rate cut in June." Reserve Bank of Australia is the central bank of Australia. Source: Sam Goldfarb, "Australian Dollar Declines after RBA Signals Possible Rate Cut," Wall Street Journal, May 21, 2019. Briefly explain the connection between the action of the Reserve Bank of Australia and the decline in the value of the Australian dollar relative to the U.S. dollar. the return on investing in When the Reserve Bank cut interest rates, it Australian dollar-denominated assets. which caused the Australian As a result, the demand for Australian dollars dollar to relative to the U.S. dollar

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