AUD/USD forecasts via Citi – positive drivers

china, australia

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. 

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