AUD/USD: Downside potential should be relatively contained - Rabobank
Analysts at Rabobank, forecast AUD/USD at 0.72 by year-end, 0.70 in 3M, 0.70 in 6M, 0.69 in 9M and 0.69 in 12M.
“Accommodative policy from the RBA has had some impact in lowering unemployment and supporting inflation. However, given that the current environment can also be characterised by low wage inflation, falling property prices and stalling confidence, the RBA is signalling that it is in no hurry to raise rates.”
“The AUD is showing sensitivity to news regarding trade wars given the importance of China as a trading partner. Our concerns that trade wars will remain a theme through 2019 does not bode well for the AUD.”
“With the Fed likely approaching the end of its hiking cycle, downside potential for AUD/USD should be relatively contained.”