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According to Rob Carnell, Chief Economist at ING suggests that we should get ready for an AUD figure of 0.6-something and they’ve pencilled in a potential trough point for the pair around 0.68-0.69 over the next few months.

Key Quotes

“It’s more a reflection that we think more things are likely to go wrong (US-China trade war, geopolitical uncertainties, global stock market correction) – rather than right over the next few months. Indeed, Rob notes that the AUD’s weakness is more than just a China story – it’s been all about the slowdown in global activity in 2018 (one that FX markets were not positioned for) that’s weighed on the archetypal activity currency that is the Aussie dollar.”

“The RBA is quite happy with a weaker AUD – and despite some likely good inflation data next week (3Q CPI due Wed), we doubt that investors will have any solid reasons to chase the currency higher.”

“We could see a test of the 0.70 level over the coming week – and if we do go down and under here, look for 0.6930/40 as the next key support test.”