(in brief) We have slightly revised our forecast profile for the AUD/USD following a review of our forecasts for commodity prices.
- AUD/USD will hold around AUD/USD 0.77 to June (prior was AUD/USD 0.76)
- falling to AUD/USD 0.74 by year's end (prior AUD/USD 0.72)
- We had expected AUD/USD to reach 0.70 by March 2019 before recovering somewhat to AUD/USD 0.72 by September. We now expect AUD/USD to reach 0.70 by September 2019 and to hold around that level to year's end.
BTW -this has not hit news wires yet
WPAC citing
"a review of our forecasts for commodity prices"
The key drivers behind our views remain in place:
- a fall in commodity prices through 2018 and 2019
- a sharp widening in the AUD / USD interest rate differential
- and some reversal of the current trend for the USD to weaken against the other majors
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Earlier today on the Australian dollar:
