Australian Dollar

Westpac sees 73 cent Aussie this year

David Llewellyn-Smith
Monday, 25 May 2015
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From Forexlive:

  • The Australian dollar is likely to remain in a US78.50¢ to US80¢ trading range through next week, but Westpac continues to forecast further weakness in the currency as the year progresses
  • We expect to see the Australian dollar trading down around US73¢ by year’s end

This is close to MB’s 70 cents year end guesscast but the mix of settings is very different. Westpac is skeptical of further rate cuts and bullish on iron ore prices from here whereas MB is very bearish iron ore and sees at least one more rate cut this year (and more next). The difference is that Westpac is also hawkish on US rate rises whereas MB is not.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.