NAB sees AUD/USD falling to 0.75 by year-end
The firm is only "moderately bearish" on the aussie largely because of the US twin deficits that will keep pressure on the greenback.
They see the dollar trading 4% lower against G10 peers by the end of this year, and expects the dollar to fall between 10-12% from current levels by 2020.
On reasons why they expect the aussie to fall, Ray Atrill - the firms head of FX strategy in Sydney - says that rising geopolitcal risks and trade war tensions between US and China will have a spillover effect to the aussie.
"If China and the US get into a trade war then Australia will effectively suffer collateral damage. Anything that hurts China from a growth perspective will have a knock-on effect on Australia", Atrill argues.
The median forecast of most firms for the AUD/USD is 0.80 by year-end, according to Bloomberg's currency forecast contribution:
