Insights from Citi FX Analysts on Australian Dollar's Performance Against Various Currencies - Predictions for the Future
Citi FX analysts have provided valuable insights into the performance of the Australian dollar against different currencies, painting a challenging path ahead for the AUD in the financial markets.
The recent sharp decline in the exchange rate has indicated a long-term ceiling just under ¥110 per Australian dollar, setting the stage for a constrained rebound between the 100-day and 200-day moving averages, currently at ¥100 to ¥102 per Australian dollar.
Looking ahead, Citi forecasts a potential dip below the recent low of around ¥90 per Australian dollar in the AUDJPY pair next year. For the near-term outlook against the US dollar, Citi expects a recovery peak at USD0.67 to USD0.68 per Australian dollar, with a possible fall to USD0.63 to USD0.64 in a risk-off environment by the end of the year.
In contrast, the Australian dollar is predicted to appreciate against the New Zealand dollar, thanks to the Reserve Bank of New Zealand's decision to ease monetary policy. Citi believes this move may have marked the pair's bottom at around NZD1.09 per Australian dollar.
Looking forward, Citi projects that the AUDNZD exchange rate will climb to NZD1.11 to NZD1.12 in the near term, with a potential reach of the 2022 high around NZD1.14 per Australian dollar in the coming months.
In conclusion, investors should keep a close eye on the Australian dollar's performance against various currencies as it navigates through a challenging path in the financial markets. Understanding these insights from Citi FX analysts can help individuals make informed decisions about their investment strategies and financial portfolios.