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9 Jul 2013
Flash: AUD/USD outlook revised to 0.8800 by year-end – NAB
FXstreet.com (New York) - The domestic economic outlook on Australia remains soft, suggests the NAB Research Team.
The latest NAB survey reported the weakest readings for business conditions & capacity utilization for more than four years – Business conditions in retail, manufacturing and mining are particularly weak. Moreover, labor market forward indicators still point down and transition from mining investment is creating a big structural adjustment task.” they add.
Ultimately, “domestic weakness, softness in China and financial volatility have encouraged us to revise down our track for the USD/AUD (reaching 0.8800 by end 2013 and 0.8300 by end 2014) and bring our next expected rate cut forward to the next meeting on 6 August (previously November), assuming no surprises from unemployment or inflation. We expect the RBA’s easing bias to continue beyond August.”
The latest NAB survey reported the weakest readings for business conditions & capacity utilization for more than four years – Business conditions in retail, manufacturing and mining are particularly weak. Moreover, labor market forward indicators still point down and transition from mining investment is creating a big structural adjustment task.” they add.
Ultimately, “domestic weakness, softness in China and financial volatility have encouraged us to revise down our track for the USD/AUD (reaching 0.8800 by end 2013 and 0.8300 by end 2014) and bring our next expected rate cut forward to the next meeting on 6 August (previously November), assuming no surprises from unemployment or inflation. We expect the RBA’s easing bias to continue beyond August.”