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31 Mar 2015
AUD/GBP might reach 0.50 over a 12-M view – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac, notes that AUD is likely to be biased lower versus GBP in the long term, and hence forecast AUD/GBP to head towards 0.50 over the next 12 months.
Key Quotes
“AUD should avoid revisiting the Feb levels near AUD/GBP 0.50 / GBP/AUD 2.00 in the next few weeks, as AUD benefits at least as much as GBP from a somewhat less bullish USD outlook and investor tension increases over the UK cliffhanger general election on 7 May.”
“However AUD is likely to be biased lower versus GBP into Q3 2015 as AUD is capped by weak commodity prices and at least one more RBA rate cut while the UK economy remains strong enough to keep markets leaning towards BoE tightening.”
“Our 12 month forecast is AUD/GBP 0.50 / GBP/AUD 2.00.”
Key Quotes
“AUD should avoid revisiting the Feb levels near AUD/GBP 0.50 / GBP/AUD 2.00 in the next few weeks, as AUD benefits at least as much as GBP from a somewhat less bullish USD outlook and investor tension increases over the UK cliffhanger general election on 7 May.”
“However AUD is likely to be biased lower versus GBP into Q3 2015 as AUD is capped by weak commodity prices and at least one more RBA rate cut while the UK economy remains strong enough to keep markets leaning towards BoE tightening.”
“Our 12 month forecast is AUD/GBP 0.50 / GBP/AUD 2.00.”