fxs_header_sponsor_anchor

News

AUD/USD to tank to 0.70 over next three months amid dovish RBA – Rabobank

The fallback in the value of AUD/USD on Monday reflects the speculation that at Tuesday’s policy meeting the Reserve bank of Australia (RBA) will refrain from tapering this month and underpin its commitment to maintaining highly accommodative monetary conditions. Jane Foley, Senior FX Strategist at Rabobank, expects the aussie to sink to the 0.70 level in the coming months.

RBA has already established its dovish credentials

“While many Australian businesses have been impacted by the actions China has taken against various Australian exports, the overall impact has to date been limited. So far, it seems that many exports have found alternative destinations. Both the government and the RBA will be mindful that a softer exchange rate is a supportive factor in the nurturing of new trading relationship.”

“Given last month’s commitment that it ‘would be prepared to act in response to further bad news on the health front should that lead to a more significant setback for the economic recovery’, there is strong reason for tapering to be delayed.” 

“It is our expectation that the USD will strengthen moderately on a three-month to six-month view against a broad base of currencies. Against this backdrop, we see scope for a dip to AUD/USD 0.70 on a three-month view.” 

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.