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12 Jun 2013
Flash: AUD/USD forecasts lowered to 0.9300 by year-end – NAB
FXstreet.com (New York) - According to the NAB Research Team, “Evidence that slowing in mining investment is well underway and weakness in gross national expenditure has led us to soften our medium-term Australian GDP forecasts.”
While a lower AUD and rates should help to offset some of the impact on the Australian economy from structural adjustment, they will be insufficient to prevent unemployment from rising – we see unemployment exceeding 6% by the end of 2013 and remaining around 6.25% in the out years. “We expect the RBA to cut again and we have revised down our currency forecasts for the AUD/USD to 0.9300 by end 2013 and 0.8700 by late 2014.” the team projects.
While a lower AUD and rates should help to offset some of the impact on the Australian economy from structural adjustment, they will be insufficient to prevent unemployment from rising – we see unemployment exceeding 6% by the end of 2013 and remaining around 6.25% in the out years. “We expect the RBA to cut again and we have revised down our currency forecasts for the AUD/USD to 0.9300 by end 2013 and 0.8700 by late 2014.” the team projects.