Quotes from Westpac Institutional Bank:
-The low point in the AUD is likely to be around the September quarter, in the aftermath of the RBA's rate cuts and amid both a strengthening USD (as markets focus on the first Fed tightening) and ongoing weakness in the Euro and the Yen (as the ECB and BoJ embrace aggressive QE).
-The RBA views the currency as overvalued and would like to see it fall further. At a minimum, it would like to hold on to the losses already recorded. Westpac puts current AUD/USD fair value in the 79-81¢ range – an estimate that incorporates both the cuts introduced into our forecasts and a lower trajectory for commodity prices out to mid 2015.
-In that scenario we see the low point of the AUD as around by June 2015 with near term downside risks.
The material has been provided by InstaForex Company – www.instaforex.com