A snippet via Citi on the Australian dollar.
Their forecasts:
- out to 3 months: 0.74
- 6-12 months: 0.76
- and Citi's 'long term' forecast: 0.77
Comments:
- We think AUD will continue to trade high beta to risk-on/global growth developments and that this will be a positive driver for the currency.
- Furthermore, China's continued strong economic recovery is a positive sign for closely linked Australia.
- Finally, we reiterate that fiscal continues to be a strong support in Australia, favouring AUD.
Citi citing China .... let's see how that relationship fares in the months ahead. Maybe the new incoming US administration can ease tensions somewhat.
