Long-term investors bet on commodity currencies falling
* Commodity currencies could see erosion of big gains since 2008
* Fund managers see falls in Australian, Canadian, NZ dlrs
* Some see Aussie as low as $0.95, CAD at C$1.05 in a year
By Jessica Mortimer
LONDON, May 7 (Reuters) - The Australian, Canadian and New Zealand dollars may be set for a decline, dragged down by a slowdown in China and a sharp fall in commodity prices.
Tuesday's 0.8 percent slide by the Aussie versus the U.S. dollar, prompted by a rate cut, was just a foretaste.
The Australian and New Zealand dollars are up 70 percent against the U.S. dollar since late 2008, driven up by near-zero rates in many developed countries. The euro zone crisis also led investors and central bank reserve managers to seek higher-yield, low-risk assets.
The Canadian dollar has gained around 30 percent.
Some analysts see all three currencies as overvalued, with worsening outlooks at home making rate cuts more likely. Continued...