A snippet from CommerzBank on the AUD
- China remains the greatest risk,
- The recovery of the Australian economy and thus of the AUD will depend largely on the extent to which concerns about the Chinese economy prove to be true … we are optimistic that there will not be a noticeable slump in Chinese economic growth.
- We forecast a recovery of the Australian currency, especially against the US dollar, which is however primarily attributable to a weak greenback rather than a strong AUD
- Fed unlikely to raise its key interest rate any further
- ECB will also continue to pursue an expansionary monetary policy, we expect a sideways movement in EUR-AUD for the time being
- As soon as the prospect of an interest rate hike in Australia next year emerges, the AUD should also gain against the EUR
