The Aussie dollar is forecast to remain around parity for the coming year thanks to a robust economy and despite a deteriorating debt crisis in Europe and expectations for more interest rate cuts in Australia. A Reuters poll of around 51 analysts showed the Australian dollar is seen in a tight range of $0.990 to $1.010 in the next 12 months. It was last trading at $1.0258. See for poll.
In December, Australia's central bank cut its cash rate to 4.25 percent, its second easing in two months, citing risks from the European debt crisis and a more benign inflation outlook at home. Still, with a cash rate at 4.25 percent, Australia has one of the highest rates in the developed world and has room to cut further should it need to stimulate growth, unlikely many of its peers. A survey of around 44 analysts showed the New Zealand dollar was expected to gently pull back to $0.76 cents by June before recovering to $0.78, its current level.
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