FXstreet.com (Barcelona) - The Aussie dollar is retracing early gains as of writing, trading in the 1.0250/60 region, or yesterday’s lows after the ECB, the PBoC and the BoE have all implemented measures directed to shore up ailing economies, against a backdrop of increasing pessimism and jittery stemming mainly from the euro zone.
A.Salter, analyst at ANZ, assesses the current situation saying that “…in the near term we see the deceleration in global economic activity and the risk of euro zone policy disappointment as reasons for leaning on the AUD...any dip should be shallow, perhaps somewhere around USD parity...”
The expert also emphasizes the AAA condition of Australia as the main driver behind foreign capital flows into the AUD and concludes suggesting that “…the unlikely chance that these flows dry up, the shallow nature of the expected dip in global activity, and our expectation that Chinese stimulus will see growth pick up in the second half of the year, are all reasons to expect that the AUD will push towards USD1.07 by mid next year…”.
A.Salter, analyst at ANZ, assesses the current situation saying that “…in the near term we see the deceleration in global economic activity and the risk of euro zone policy disappointment as reasons for leaning on the AUD...any dip should be shallow, perhaps somewhere around USD parity...”
The expert also emphasizes the AAA condition of Australia as the main driver behind foreign capital flows into the AUD and concludes suggesting that “…the unlikely chance that these flows dry up, the shallow nature of the expected dip in global activity, and our expectation that Chinese stimulus will see growth pick up in the second half of the year, are all reasons to expect that the AUD will push towards USD1.07 by mid next year…”.
