ANZ issue a changed projections for the Australian dollar.
Citing (this in summary from a longer note):
- The global outlook has deteriorated sufficiently that it no longer provides a plausible cushion to the inevitable reduction in domestic rates.
- As such, we have lowered the trough in our forecast to USD0.65.
- trade tension escalating and the likelihood of a resolution dimming, we think the external environment will shift from being an offset to soft domestic conditions to becoming a headwind. This means both the domestic and external stories are pointing to more substantial weakness for the AUD in 2019.
Forecast is for lows in December quarter of this year and AUD to recover after that.
