Goldman Sachs is out with a note reiterating a target of 0.80 in AUD/USD in 12 months.
From the sounds of things, they don’t expect the decline to happen right away. They say the current signs of stability in the labor market reflect a hiatus in the decline in commodity prices.
Goldman says the next wave in AUD selling will start after a 9-month pause (I’d say we’re in month #4 now) and coincide with fiscal consolidation and a drop in mining investment.
That’s a bold call but we like bold calls here.
