After peaking in late December around 0.6871, the AUD/USD pair fell to 0.6500 this month. The economists of Rabobank analyze the prospects for the Australian dollar.
EUR/AUD downtrend to 1.5600 12 months ahead
At first glance, Australian jobs data for January encouraged views that the economy is cooling, sparking speculation that the RBA could bring forward the first rate cut of the cycle. That said, policymakers will likely need much more economic data before making a policy decision.
To date, the RBA has remained one of the most dovish and Rabobank expects rates to remain unchanged until the fourth quarter.
Assuming the Fed is the first to lower rates, AUD/USD could rise by the end of the year.
Reflecting the relative resilience of the Australian economy compared to that of Germany, We also expect the EUR/AUD to show a downward trend towards 1.5600 12 months ahead..
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
