Forex Flash: Expect AUD/USD decline in the new year – Goldman Sachs

FXstreet.com (Barcelona) - Goldman Sachs FX Strategists are expecting AUDUSD to decline over the year ahead and have set their 3,6 and 12 months forecasts at 1.00, 0.98 and 0.98 respectively.

The motivation for their view is that despite further USD weakness, the are expecting a further deterioration in Australia's trade accounts and an abatement in the strong capital inflow into Australia's bond market. As such they expect AUD to remain under pressure in the coming months on a TWI basis and to move from parity against USD to 98 cents on a 6 and 12 month view.