"Domestically, mining output is still strong, but investment in the sector is not, and iron ore prices are plummeting," wrote Roubini's local analyst David Nowakowski. "Although some easing of China's credit crunch will help Australian exports in the short run, we see lower Chinese growth in 2015 as a headwind that will weaken Australia's growth and inflation next year, and weigh on growth-orientated assets such as equities and the Australian dollar." Mr Nowakowski said flagging growth and low inflation would create room for the Reserve Bank of Australia to make a "cut or two in interest rates, to 2 per cent".
Read more: http://www.smh.com.au/business/the-economy/dr-doom-nouriel-roubini8217s-firm-warns-of-20-australian-dollar-slump-20140922-10kc2e.html#ixzz3E3L5JJAG
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
