30 Aug 2013
Flash: AUD faces challenges in next 1 to 3 years - RBS
FXstreet.com (Barcelona) - AUD faces tough challenges in the next one to three years as the economy re-adjusts from mining investment-led growth, with the industry momentum having clearly peaked, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"It remains expensive, and thus we expect moderate further declines. However, the structural external position is heading towards balance and it should eventually settle at a higher average than pre-mining boom levels."
"There is risk of a period of undershoot in the next year, and it continues to depend heavily on the Chinese fixed investment growth that appears in need of structural adjustment lower."
Key Quotes
"It remains expensive, and thus we expect moderate further declines. However, the structural external position is heading towards balance and it should eventually settle at a higher average than pre-mining boom levels."
"There is risk of a period of undershoot in the next year, and it continues to depend heavily on the Chinese fixed investment growth that appears in need of structural adjustment lower."