A brief summary from a late week Rabobank note on the Australian dollar:
- investors are currently over-estimating the ability of the global economy to bounce back from the pandemic
Combined with:
- any news that China could be targeting Australian exports in retaliation for the government's political stance would also leave AUD vulnerable
Rabo's view is thus:
- we see risk of a drop in sentiment by the end of the year
- likely to drag AUD/USD lower
- forecast AUD/USD at 0.64 on a six-month view
