Analysts at Westpac explained that over the last month the Australian dollar has fallen from around USD0.74 to USD0.71 and is now settling around USD0.715.
Key Quotes:
“The AUD is closing in on our mid-2019 forecast of USD0.70 at a much faster pace than we had envisaged.”
“Recall that the key arguments we have used throughout 2018 to signal a significant fall in AUD from its peak in January 2018 of USD0.81 have been around: Australian interest rates falling much further below US rates than had been expected by markets; a general slowdown in the world economy, particularly through 2018 and 2019; some deterioration in the Australian housing market; and political uncertainty associated with the Australian Federal Election due by May 2019.”
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