Flash: AUD/USD 1-month forecast lowered to 0.8800 – UBS
FXstreet.com (New York) – A weaker AUD is a necessary condition for full economic rebalancing in Australia, notes Gareth Berry, a Research Analyst at UBS.
“We believe it will happen one way or the other – if AUDUSD refuses to fall of its own accord from current levels, another RBA rate cut would ensure a resumption of the downtrend.”
“The Eurozone has not been so lucky of course. A strong euro has obstructed rebalancing there, but we believe market forces will be kinder to Australia given the currency’s main attraction is its yield advantage and the RBA has plenty room to …read more