Analysts at Citibank forecast the AUD/USD pair at 0.72 in a 0-3 month horizon and at 0.73 in 6-12 months. The point in the short-term the 0.7135 area has on the short-term.
Key Quotes:
“It seems that the RBA remains fairly optimistic and willing to see how things evolve with the current level of monetary stimulus. Negative rates pretty much ruled out. Additionally, fiscal support continues, with the governments JobKeeper and Job Seeker programmes recently extended. However, risks to AUD are fat tailed (second wave risks, US election), with particular worry placed on the evolution of US/China relations.”
“The market reaction to the July FOMC Minutes suggests a “hawkish” interpretation.”
“Citi analysts raised the price forecasts of base metals, such as copper and aluminum, which may benefit the market outlook for the commodity currency like AUD.”
“The low of AUDUSD so far has been 0.7135 and good support has held on the short-term chart with momentum now as oversold as at the low on 15th June during that short term correction.”
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