From The Australian:
With the RBA’s current easing bias making an April/May rate cut likely, and US interest rate hikes potentially starting as early as June, there’s a good chance the Australian dollar will settle around 75 US cents by mid-2015, according to Westpac Chief Economist Bill Evans.
He notes that AUD/USD has fallen about 25% in the past two years, while Australia’s export commodity index fell by 38%, and with around 70% of Australia’s total exports priced in US dollars, the additional fall in AUD/USD that would be needed to neutralise the recent commodity price falls would be around 2.5 cents.
