9 Mar 2015
AUD/USD to test 0.68 end 2016 – BAML
FXStreet (Edinburgh) - In the view of analysts at BAML, the pair could grind lower to the area of 0.73 towards the end of the current year and 0.68 at the end of 2016.
Key Quotes
“Our conviction that the AUD will weaken has grown and we believe the exchange rate will need to stay below “fair value” if it is to provide any degree of support to the economy”.
“The RBA’s decision to pre-emptively cut signals willingness to use its policy levers to achieve this”.
“We revise down our end-2015 forecast for AUD/USD to 0.73 (from 0.77) and our end-2016 forecast to 0.68 (from 0.73)”.
“Our 1Q 2015 forecast of 0.80 accounts for a temporary “short-squeeze” but we believe a move above 0.80 would offer a good opportunity to sell AUD|”.
Key Quotes
“Our conviction that the AUD will weaken has grown and we believe the exchange rate will need to stay below “fair value” if it is to provide any degree of support to the economy”.
“The RBA’s decision to pre-emptively cut signals willingness to use its policy levers to achieve this”.
“We revise down our end-2015 forecast for AUD/USD to 0.73 (from 0.77) and our end-2016 forecast to 0.68 (from 0.73)”.
“Our 1Q 2015 forecast of 0.80 accounts for a temporary “short-squeeze” but we believe a move above 0.80 would offer a good opportunity to sell AUD|”.