Looking ahead

Posted by Scriptaty | 5:21 AM

Most analysts see relative stability for the Aussie dollar, though some risks remain on the horizon.

A repeat of the May-June global risk aversion sell off could impact the Aussie dollar negatively.

“The Australian economy remains vulnerable to global growth expectations and a slowdown in commodity prices,” says Kathleen Stephansen, head of global economics at Credit Suisse.

However, most expect smooth sailing between now and the end of the year for the Aussie dollar. Callow does not expect AUD/USD to revisit the March low at 0.7015 and looks for the pair to end the year around 0.7400. Similarly, Ideaglobal’s Sofat pegged her year-end target for the Aussie/dollar at 0.7500 — very close to the mid-July level.