23 Mar 2015
AUD/NZD parity? – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, forecasts AUD/USD to head towards 0.70 on a 12-M view, and AUD/NZD to see parity by end-2015.
Key Quotes
“Even though last week’s more dovish than expected statement from the FOMC has pushed back the market’s assessment of when the Federal Reserve is likely to hike rates, the Fed is still expected to tighten policy this year (our house view favours a Fed rate hike in December 2015).”
“Consequently we expect that the USD is likely to remain on an appreciating trend this year albeit at a much slacker pace than of late.”
“..we expect that relatively weaker fundamentals in the Australian economy suggest that the AUD is likely to weaken against the USD at a faster pace.”
“In contrast to the steady policy outlook of the RBNZ, we expect the RBA to cut rates further this year as the country’s export position is impacted by slowing growth in China and weak prices for iron ore and coal.”
“We forecast a move towards AUD/USD0.70 on a 12 mth view and a move towards AUD/NZD parity by the end of 2015.”
Key Quotes
“Even though last week’s more dovish than expected statement from the FOMC has pushed back the market’s assessment of when the Federal Reserve is likely to hike rates, the Fed is still expected to tighten policy this year (our house view favours a Fed rate hike in December 2015).”
“Consequently we expect that the USD is likely to remain on an appreciating trend this year albeit at a much slacker pace than of late.”
“..we expect that relatively weaker fundamentals in the Australian economy suggest that the AUD is likely to weaken against the USD at a faster pace.”
“In contrast to the steady policy outlook of the RBNZ, we expect the RBA to cut rates further this year as the country’s export position is impacted by slowing growth in China and weak prices for iron ore and coal.”
“We forecast a move towards AUD/USD0.70 on a 12 mth view and a move towards AUD/NZD parity by the end of 2015.”