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.
“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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.