The high-flying Australian dollar is seen pulling back very modestly in the coming months, but is still forecast to stay well-above parity as lofty domestic rates and a solid economy attract yield-hungry investors.
Around 45 analysts polled forecast the Australian dollar at $1.0600, before gradually slipping to $1.0400 in six months. It tore to a 29-year peak of $1.1081 late July, having gained a staggering 17 percent in the past year.
It last traded at $1.0656. Five respondents forecast the Aussie to scale a fresh peak, climbing as high as $1.1330 in a year's time.
Australia's central bank left its 4.75 percent cash rate unchanged this week, for the tenth straight month. It said it was best for monetary policy to stay steady in times of great global uncertainty, a sign that rates could be on hold for months. That was a change from last month when the central bank considered hiking in August due to domestic inflation concerns.
The New Zealand dollar is seen likely to firm around $0.8400 over the next 12 months, having scaled a 30-year peak of NZ$0.8842 on August 1. The kiwi ranks among the best performing currencies, showing a whopping rise of 16 percent in the past year. It last traded at $0.8330.
Comments
Comments are closed for this article.