Friday, November 6, 2015

AUD/USD could end the year around 0.69 – BAML

FXStreet (Edinburgh) - According to BofA Merrill Lynch Global Research, the Aussie dollar could slip towards the 0.69 level vs. the greenback by year-end.

Key Quotes

“While our baseline view remains that the RBA will keep policy unchanged, this has become a much closer call following the hike in mortgage rates by domestic banks, as well as the much lower-than-expected 3Q CPI inflation data”.

“The near-term outlook for the AUD therefore depends crucially upon the RBA’s policy changes and communication over coming months”.

“We are comfortable with projecting only a small further decline in AUD/USD (to 0.69) by December, but the downside to this forecast would increase if the RBA delivered further easing”.

“We continue to expect it to reach 0.65 in 2016 as capital inflows into Australia’s resource sector decline”.
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