Jane Foley, Senior Currency Strategist at Rabobank, places the pair in the area of 0.7000 on a 12-month horizon.
Key Quotes
“The value of AUD/USD may have fallen sharply since July 2014 but Australia’s effective exchange rate has shown less movement”.
“Through most of 2014 AUD/JPY was pushing higher – this was likely a strong motivation behind the RBA’s verbal protests about currency strength. AUD/JPY has now given back most of last year’s gains””.
“However, the RBA is now faced with a worsening domestic economic outlook”.
“Australia’s major exports are iron ore and coal, both of which have suffered from falls in price to multi-year lows”.
“While China is still importing large volumes of commodities, the lower prices will feed through as lost revenue for Australia”.
“Another policy move may follow the Feb 3 RBA rate cut. We expect AUD/USD to fall towards 0.70 on a 12 mth view”.
Key Quotes
“The value of AUD/USD may have fallen sharply since July 2014 but Australia’s effective exchange rate has shown less movement”.
“Through most of 2014 AUD/JPY was pushing higher – this was likely a strong motivation behind the RBA’s verbal protests about currency strength. AUD/JPY has now given back most of last year’s gains””.
“However, the RBA is now faced with a worsening domestic economic outlook”.
“Australia’s major exports are iron ore and coal, both of which have suffered from falls in price to multi-year lows”.
“While China is still importing large volumes of commodities, the lower prices will feed through as lost revenue for Australia”.
“Another policy move may follow the Feb 3 RBA rate cut. We expect AUD/USD to fall towards 0.70 on a 12 mth view”.
