ANZ: Australian dollar headed to 0.65 cents

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Via ANZ:

The Australian dollar’s recent leg down has pushed it below USD0.70 – that is, below the trough we forecast for this cycle. The global outlook has deteriorated sufficiently that it no longer provides a plausible cushion to the inevitable reduction in domestic rates. As such, we have lowered the trough in our forecast to USD0.65.

Before year end they say. I still agree its lower before its higher.

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.