The deteriorating health of the Canadian economy provides valuable insight into what Australia's economy will look like soon enough, including a plunging Australian dollar, as similar cyclical forces weigh down on both countries, challenging policymakers.

Atul Lele, chief investment officer at private bank Deltec, sees global growth booming but not for commodity-focused economies like Australia's.

"I can easily see a scenario where it goes into the US50s," Deltec's Atul Lele says of the Australian dollar. Credit:Louie Douvis

Last week, the Bank of Canada cut interest rates to 0.5 per cent in what was only a 50-50 decision and the second cut in 2015, prompted by fresh declines in the oil price and a difficult transition to non-energy-led growth. The central bank denied it was witnessing a recession.

"Canada is a fantastic six-month preview of what's going to happen to Australia," Mr Lele, an Australian who is based in the Bahamas, said. "The Australian dollar, it's going below US70¢ in the next six months quite easily. More importantly, it's not bouncing back any time soon. I can easily see a scenario where it goes into the US50s.