Forex Flash: AUD/USD would trade between 1.0400 -1.0600 this year – Rabobank
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AUD/USD
FXstreet.com (Barcelona) - After climbing as high as the boundaries of 1.0460, the upside of the Aussie dollar run out of steam, declining since then to the current levels around 1.0440/45, as the lack of direction is characterizing the markets so far.
Jane Foley, Senior Currency Strategist at Rabobank, comments that despite the label of 'overvalued currency', the AUD has been reluctant to give away ground as of late, prompting the bank to start considering the likeliness of a 25 bps rate cut in the next RBA meeting.
"However, yields are still attractive relative to other developed economies outside peripheral Europe and this suggests that even with a rate cut next week the AUD is well positioned to hold its own against the USD this year as long as general levels of risk appetite hold up& We expect an AUDUSD1.04 to 1.06 range to contain most activity in AUDUSD this year", concludes the expert.
Jane Foley, Senior Currency Strategist at Rabobank, comments that despite the label of 'overvalued currency', the AUD has been reluctant to give away ground as of late, prompting the bank to start considering the likeliness of a 25 bps rate cut in the next RBA meeting.
"However, yields are still attractive relative to other developed economies outside peripheral Europe and this suggests that even with a rate cut next week the AUD is well positioned to hold its own against the USD this year as long as general levels of risk appetite hold up& We expect an AUDUSD1.04 to 1.06 range to contain most activity in AUDUSD this year", concludes the expert.
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