13 Jul 2015
AUD/USD heading towards 0.67 in 12-months – Goldman Sachs
FXStreet (Edinburgh) - Analysts at Goldman Sachs see the pair weakening to the 0.67 area in a 12-month horizon.
Key Quotes
“In Australia, RBA cuts in 2015H1 were aimed at encouraging the positive trend in household demand – for this reason, the recent decline in retail sales and consumer sentiment will be of concern to the RBA”.
“On top of this, iron-ore prices have declined in recent weeks, reversing the modest gains to Australian terms of trade since March”.
“Our Australian economics team continue to think the market underprices the risk of further easing from the RBA, which could come as early as next month. We forecast AUD/$ at 0.67 in 12 months”.
Key Quotes
“In Australia, RBA cuts in 2015H1 were aimed at encouraging the positive trend in household demand – for this reason, the recent decline in retail sales and consumer sentiment will be of concern to the RBA”.
“On top of this, iron-ore prices have declined in recent weeks, reversing the modest gains to Australian terms of trade since March”.
“Our Australian economics team continue to think the market underprices the risk of further easing from the RBA, which could come as early as next month. We forecast AUD/$ at 0.67 in 12 months”.