A snippet via Citi on the Australian dollar.
- out to 3 months: 0.74
- 6-12 months: 0.76
- and Citi’s ‘long term’ forecast: 0.77
- 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.
What's your reaction?