ANZ have updated their forecasts for the Australian dollar
- Downgraded AUD/USD forecasts to USD0.68 at the end of 2015
- and USD0.67 by early 2016
The say:
- AUD is looking vulnerable on a number of fronts
- A continuation of volatility will drive further weakness, while any signs that volatility has subsided will bring the Fed back into focus and also drive weakness
- Should the AUD squeeze higher on more positive domestic data, it should be used as an opportunity to sell
- We remain structurally bearish on the AUD, targeting USD0.68 by December 2015
(Currency strategy from Daniel Been, Senior FX Strategist at ANZ)