AUD: Current forecasts point to hitting a fresh low in 2016 - ANZ

Research Team at ANZ, suggests that the global environment is increasingly echoing the 1998-2000 era.

Key Quotes

“The Fed has stalled its tightening cycle as global uncertainty and market volatility continue to threaten the US recovery, and the US dollar has stalled its rally.

While our current forecasts point to the AUD hitting a fresh low in 2016, a replay of 1998-99 would mean a range-bound AUD is a more likely scenario. If this were to manifest, we still think that the USD0.78/80 region would represent the top of the range, so from here risk/reward is still skewed lower.”