FXStreet reports that economists at ANZ Bank have left the AUD/USD medium-term forecasts of modest appreciation intact, but see some downside risks to the year-end forecast of 0.73.
“For now, our outlook for global growth is relatively benign, and by extension we expect that the terms of trade can retain their current strength. This will provide some counterweight to the impact that QE can have on the AUD.”
“Our forecast remains predicated on the assumption that 2021 is a better year than 2020”
“More important to our forecasts will be the sustainability of the global growth pulse, and in this regard, the outcome of the US election and what it means for the fiscal outlook, together with the scale of the second wave of COVID-19 in the northern hemisphere will be more important.”
“There is some downside risk to our year-end 2020 target for the AUD/USD of 0.73. However, we still think there is value in buying the aussie around 0.70 for the medium-term.”
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