AUD to remain stuck in the broad 0.75-0.80 range for 2018 - ING

Analysts at ING explain that one of the big themes for the Aussie dollar of late has been its depleting yield advantage - and they expect this to continue with the Reserve Bank of Australia happy to sit tight on policy normalisation.

Key Quotes

“With the domestic economy stuck in 'lowflation' mode, the necessary inflation signals to trigger an RBA re-pricing may not arise until 2H18. Australian politics are unlikely to actively weigh on the currency, although the latter half of 2018 may also see a narrowing focus on the 2019 Federal Elections - which could act as a limiting factor for any upside. We've got AUD/USD stuck in the broad 0.75-0.80 range for most of 2018.”