Back
16 Jul 2015
Expect more AUD/USD downside to play out – Danske bank
FXStreet (Mumbai) - The research analyst at Danske Bank expects the AUD/USD pair to dip over a period of next one month to three months.
Key Quotes
“The AUD still suffers from a significant terms of trade shock and with the September Fed hike looming we expect the cross to depreciate even further with no additional rate cuts from the Reserve Bank of Australia.”
“We target AUD/USD at 0.74 in 1M (previously 0.76) and 0.72 (0.74) in 3M. We expect the cross to stabilise in 6-12M, when a Fed hiking cycle has been priced and the ‘Aussie’ economy recovers. We target the cross at 0.71 in 6M and 12M (from 0.73).”
Key Quotes
“The AUD still suffers from a significant terms of trade shock and with the September Fed hike looming we expect the cross to depreciate even further with no additional rate cuts from the Reserve Bank of Australia.”
“We target AUD/USD at 0.74 in 1M (previously 0.76) and 0.72 (0.74) in 3M. We expect the cross to stabilise in 6-12M, when a Fed hiking cycle has been priced and the ‘Aussie’ economy recovers. We target the cross at 0.71 in 6M and 12M (from 0.73).”