The Australian Dollar is expected to fall by as much as 20% over the next two years according to a Deutsche Bank AG forecast and is predicted to tumble to the mid 60s level against the ‘Greenback’.
“We can envisage, based on our central forecasts as a house, a decline in the AUD to the mid 60s over the next 2-years without either a domestic or offshore crisis,” Adam Boyton, the chief economist for Australia at Deutsche, wrote in a research note today, referring to U.S. cents. “U.S. 10-year bond yields close to Australian yields could mean an AUD/USD rate in the mid 60s.”
Looking to Friday’s session and early on the ‘Aussie’ slipped against several peers including the Pound and Euro and was set to make its first weekly decline in a month. The currency remained under pressure from yesterdays weaker than expected manufacturing PMI report out of China. The Asian nation is Australia’s biggest trading partner and any negative data from it often has a knock on effect on the ‘Aussie’.
Also weighing upon the ‘Aussie’ was the news that China has a record stockpile of iron-ore, Australia’s biggest commodity export. The news lowered the price of the commodity and was not helped by the fact that Australia has increased the supply of the steel-making material.
As the morning went on the ‘Aussie’ saw a slight rebound upwards after the currency found some support from improved demand for riskier assets.
Australian Dollar (AUD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.8999 ,
Australian Dollar,, Pound Sterling,0.5403 ,
Australian Dollar,,Euro,0.6564 ,
Australian Dollar,,New Zealand Dollar,1.0842 ,
Pound Sterling,,Australian Dollar,1.8527 ,
US Dollar,,Australian Dollar,1.1116 ,
Euro,,Australian Dollar,1.5236 ,
[/table]
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