Overnight in the Australian Financial Review: Aussie to rise to US92¢ next year: Westpac
I had these Westpac comments posted up earlier during our Asian session yesterday here: “AUD is likely to trend higher against the USD”. Check out that link for Westpac’s view on the AUD, if you didn’t see it already yesterday.
But the Australian Financial Review article is ungated so even though it covers the same ground its worth a read (its ungated, link)
They expand with some comments from other analysts.
Roy Teo, a strategist in Singapore at ABN Amro Bank, on iron ore prices (ps. Greg had a great post on this a few days ago with implications for the AUD: Forex Technical Analysis (VIDEO): Trading the Iron Ore vs. AUDUSD relationship)
- “It will impact the terms of trade for Australia,” , said yesterday. “That is negative for the Aussie.”
- ABN Amro forecast that the Aussie will decline to US86¢ at the end of December and US78¢ by the end of next year
And … Katrina King, director of research and strategy at QIC:
- QIC sees a growing risk that US bond yields will fail to climb as the Fed increases its cash benchmark
- The RBA is right to be concerned that the BOJ’s expanded easing will help keep the Aussie higher than fundamentals warrant by spurring more purchases of Australian debt
- Estimates that could see monthly inflows from Japan rise by 60 per cent
- The RBA “will be held on neutral for longer than they otherwise would have been, because the Australian dollar will be held up higher than it otherwise would be from fair value models”
