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Westpac have slightly lowered their "end.....>

AUSSIE
AUSSIE: Westpac have slightly lowered their "end 2018 AUD/USD forecast from
$0.73 to $0.72 and expect the final adjustment in the profile to $0.70 to play
out through the first half of 2019. However we are not sharply lowering our
target low point in AUD - at this stage recent movements look to be an
overreaction to fears that will not be franked. We continue to anticipate that
the peak in the USD will be around the June quarter 2019 when the market
abruptly shifts to recognising that the Federal Funds rate has peaked. In
extending our forecasts through 2020 we believe that the issues driving the
AUD/USD cross will be dominated by the USD. With the Fed expected to go on hold
by mid-2019; markets moving to price in rate cuts and the US yield curve
inverting through 2020, the weakening of the USD should see AUD lifting through
2020 to $0.75 by year's end."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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