Barclays on AUD/USD
Barclays Capital FX Strategy Research discusses AUD outlook expecting a modest down pressure to persist into year end targeting 0.77 and en-route to 0.76 by Q1 of 2018.
"The AUD remains overvalued, and its carry advantage over the USD is likely to continue to narrow, with the US still leading in monetary tightening into H2 18, by our forecasts.
Australia's growth and inflation are likely to remain subdued, given its latecycle position, the secular adjustment in the commodity sector, and significant internal imbalances. Stretched property prices and household debt levels pose downside risks to construction activity and investments," Barclays argues.
It looks like AUD/USD will make it there today. For other bank trade ideas, check out eFX Plus.
