Kristoffer Lomholt, Senior Analyst at Danske Bank, sees the Aussie Dollar depreciating towards the 0.7200 handle vs. the greenback in the short-term.
“While we only pencil in moderate USD-strength near-term, AUD/USD will in our view be vulnerable in the coming months”.
“First turning points of the global business cycle usually lead to periods where high-yielding currencies such as the AUD suffer. Also the weakness in China specifically is troublesome for the AUD given Australia’s high reliance on exports to China”.
“AUD/USD has reached our 1M forecast and we therefore ‘roll’ our profile, forecasting the cross at 0.74 in 1M, 0.72 in 3M (prev. 0.73), 0.73 in 6M (prev. 0.74) and 0.75 in 12M (unchanged)”.
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