Market news
24.01.2020, 15:51

Risk of AUD/USD dropping toward 0.65 on a 12-month view – Rabobank

FXStreet reports that analysts at Rabobank note "the consensus view is that AUD/USD will move higher this year, extending the choppy upward bias that was in place between October and December." 

"In view of Australia’s trade links, the AUD is sensitive to the growth outlook in China and it is likely that the market’s optimistic outlook on the AUD was drawn from the completion of the Phase 1 trade deal between the US and China. Additionally, it is likely assumed that the appearance of some better data releases in the US will lift global growth prospects and add a buoyancy to risk appetite. We see significant risks to this view based on both on international and domestic factors and continue to expect AUD/USD to end the year at weaker levels."

"If consumer caution returns, there is a strong likelihood that the strength of the November retail sales data gives way to weak results for December and January. A poor month for consumers could be compounded by the impact of bush fires and smoke pollution. It is not wholly unsurprising that surveys indicate that consumer confidence dropped into the start of this year."

"Another risk for the Australian economy and the AUD is the potential for trade tensions between the US and China to rise again - impacting the outlook for Chinese growth. An economic impact from China’s coronavirus could also have negative implications for the AUD. Even if the RBA decides to stand pat on policy on February 4, the door for further easing is likely to be left wide open. We see risk of AUD/USD dropping toward 0.65 on a 12 month view."

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location