24 Jul 2013
Flash: AUD/NZD targets 1.1500 within 1-month – UBS
FXstreet.com (New York) - The Australian dollar has weakened sharply already since May, but nowhere near enough yet to facilitate a smooth handover, notes Research Analyst Gareth Berry at UBS.
Key quotes
“Another RBA rate cut should help engineer further currency weakness, but if the gradual downtrend in AUD/USD does not continue, then a more violent decline at a later date becomes more likely.”
RBA Governor Stevens summed up the state of play three weeks ago when he said "If the economy 'needs' a lower exchange rate, it will probably get it." We would add - it will likely happen one way or the other.
Moreover, “we look for the AUD/NZD to fall to 1.15 in 1m, to 1.14 in 3m, and to 1.08 by end-2013.”
Key quotes
“Another RBA rate cut should help engineer further currency weakness, but if the gradual downtrend in AUD/USD does not continue, then a more violent decline at a later date becomes more likely.”
RBA Governor Stevens summed up the state of play three weeks ago when he said "If the economy 'needs' a lower exchange rate, it will probably get it." We would add - it will likely happen one way or the other.
Moreover, “we look for the AUD/NZD to fall to 1.15 in 1m, to 1.14 in 3m, and to 1.08 by end-2013.”