Markets are mistaken that Australia is the great post-virus rebounder

Thursday, 2 July 2020

For an idea of how disparate predictions are for the world’s post-coronavirus rebound, look no further than forecasts for Australia’s dollar.

Bulls such as Morgan Stanley see the currency rising to 73 U.S. cents by year-end as the worst of the pandemic eases. At the other end of the spectrum, JPMorgan Chase & Co. and Rabobank say it may tumble to the low 60s level due to slowing global growth amid a second wave of infections and U.S.-China tensions.

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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.