AUD forecasts for end 2018 and into 2019 (higher than current spot)

Author: Eamonn Sheridan | Category: News

A forex note from CBA on the Australian dollar (comes via Bloomberg report) 

 Forecasts:
  • 0.7500 for Q4 of 2018
  • 0.7600 for 2019 Q1
But before that says CBA:
  • AUD is oversold but can still drop to 0.70 in short term
  • model (a replica of the RBA model of the TWI) says AUD 7% undervalued
Cites:
  • further US / China trade tensions may push down commodity prices
Also, a heads up on what to watch if there is the Fed should pause in their rate hike cycle before end of the year
  • USD would drop circa 3 to 5%, 


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