Forecasts for AUD/USD, improving but its still a sell


ANZ forecasts for the Australian dollar this year:

ANZ forecasts for the Australian dollar this year:

Their main points (in brief):

AUD has underperformed the improvement in global sentiment

  • this seems justified by the tepid domestic story

While the recent improvement in the unemployment rate removes the immediate risk of RBA easing, it will remain a part of the narrative through 2020

The bigger risk to our forecast would be a broadly depreciating USD, but that is unlikely without global growth rising above trend – and that is a bridge too far.

we still prefer selling rallies above USD0.70 over buying dips towards the lows.

ForexLive



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