The headline at the AFR today reads:
And the story says:
Goldman Sachs has singled out the falling $A as one of its top recommendations to global clients as the currency plunges to its lowest levels in two years and banks continue to slash their forecasts.
After falling almost US6¢ since the beginning of the month to trade just under US97c on Friday morning, the investment bank reckons the Aussie dollar is headed for US90¢ within 12 months. HSBC turned bullish on the greenback, and lowered its $A forecast to US90¢ from $US95¢. UBS and Credit Suisse trimmed their forecasts on Thursday to comparable levels.
Only problem with this non-story is GS issued its top global short call on May 14, ten days ago, when the dollar was at parity. And Tim Toohey updated it with the 90 cents call eight days ago. And Credit Suisse cut its forecast to 85 cents this morning not 90 cents.
But what’s a few pips and weeks between friends?
