A forex note from CBA on the Australian dollar (comes via Bloomberg report)
Forecasts:
- 0.7500 for Q4 of 2018
- 0.7600 for 2019 Q1
But before that says CBA:
- AUD is oversold but can still drop to 0.70 in short term
- model (a replica of the RBA model of the TWI) says AUD 7% undervalued
Cites:
- further US / China trade tensions may push down commodity prices
Also, a heads up on what to watch if there is the Fed should pause in their rate hike cycle before end of the year
- USD would drop circa 3 to 5%,