Revised forecasts from CBA to reflect what they expect will be a still stronger US dollar to come.

USD gains ahead even though CBA expect a further 3 cuts from the Fed, from September through to March

EUR/USD at 1.10 by the end of this year (prior forecast was 1.17)

Cable to 1.19 by year‑end (prior forecast 1.28)

  • citing political and Brexit‑related uncertainties

AUD/USD to 0.67 end - 2019 (0.72 previously)

  • RBA to cuts November and February, 25bp each time
  • yuan lower to also weigh on the AUD

NZD/USD 0.63 (from 0.68)

  • still heavy NZ business confidence, global economic risk also

USD/JPY seen around 105 (from 109 prior), ie USD to weaken against yen

  • UST yields to fall further than expected