AUD/USD: long-term bears
Analysts at Credit Suisse Group, TD Securities and Bank of America Merrill Lynch expect Australian dollar to continue depreciating versus its US counterpart.
According to Credit Suisse, AUD/USD will fall to $0.8700 in 3 months and to $0.7500 in a year, the minimal level since May 2009. The bank expects Aussie to end 2013 around $0.9000. The Bank of America forecasts $0.8900 for the year-end. TD Securities says AUD will fall to around $0.9000 by Dec. 31 and trade from $0.8500 to $0.9000 in 2014.
Prime Minister Kevin Rudd this week warned about the risk of Australia’s first recession in more than two decades. Building permits fell by 1.1% in May as data released today showed. Bloomberg survey shows that traders expect the Reserve Bank of Australia to cut rates at least once more this year.