OctaFX | OctaFX Forex Broker
Open trading account

AUD/USD risks falling to 0.6500 by end-2020 – Nomura

Analysts at Nomura are suggesting a weaker Australian dollar vs. its American counterpart to 0.66 by mid-2020 and 0.65 by the year-end amid poor Australian fundamentals and increased odds of Reserve Bank of Australia (RBA) resorting to quantitative easing (QE) this year.

Key Quotes:

“Falling consumer sentiment to fall further due to the bushfire crisis.

Possible RBA unconventional policy.

On the further impact of bush fires, could see rise in inflation and rise in construction-related employment.

Nomura base case is for 2 rate cuts to come, the first next month and both in the first half of this year.

With pricing pressure and employment likely higher ahead this may give scope for the RBA to not deploy unconventional policy but Nomura still expect it as more likely than not.

Nomura note risks to their view.

Jobs data and inflation data due ahead of the RBA February 4 meeting.”

AUD/USD Technical Analysis: On the bids beyond 200-day SMA

AUD/USD takes the bids to 0.6911 during the early Monday. In doing so, the pair extends recovery gains beyond 200-day SMA, which in turn pushes buyers.
Read more Previous

Sources: Terms of US-China phase one trade deal will be balanced and legally binding on both sides – Global Times

Citing sources close to the US-China trade talks and analysts on Sunday, China’s Global Times reports some optimistic comments on the phase one trade
Read more Next
Start livechat