A couple of forecasts and comments on the direction of the aussie after the RBA chose to keep rates on hold once again this week
The median forecast based on Bloomberg's survey for this year-end is for AUD/USD to rise to 0.7900. There are many diverging views on the matter and here's two of them:
BofAML - Tony Morriss
- US dollar has really gained some traction in recent weeks
- Sees a low for AUD/USD around 0.75 at the end of June
- Expects recovery to 0.77 by year-end, while seeing the RBA raising rates by then
- Weaker AUD would support activity and push up inflation
Goldman Sachs Asset Management - Philip Moffitt
- Hard to be bullish on the aussie
- AUD/USD to decline to 0.72 by year-end
- There's going to be a pretty decent period of sluggish growth without inflation in Australia
- Still has slack in the labour market
Battle of the big boys. Who's gonna be right? Does it even matter?
