Citi DX Analysts Predict Challenging Path Ahead for Australian Dollar
Citi DX analysts have provided valuable insights into the Australian dollar’s performance against various currencies, painting a picture of a tough road ahead for the AUD. The recent sharp decline in the exchange rate has led to the formation of a long-term ceiling just below ¥110 per Australian dollar, indicating potential challenges in the near future.
According to the brokerage firm, any potential rebound for the AUD is likely to be limited between the 100-day and 200-day moving averages, currently hovering at ¥100 to ¥102 per Australian dollar. The analysts are also forecasting a possible dip below the recent low of around ¥90 per Australian dollar for the AUDJPY pair in the coming year.
In terms of the Australian dollar’s outlook against the US dollar, Citi expects a recovery peak at USD0.67 to USD0.68 per Australian dollar, with a chance of falling to USD0.63 to USD0.64 in a risk-off environment by the end of the year. However, there is a more positive outlook for the AUD against the New Zealand dollar, with predictions of appreciation following the Reserve Bank of New Zealand’s decision to ease monetary policy.
Citi projects that the AUDNZD exchange rate could climb to NZD1.11 to NZD1.12 in the near term, with a possibility of reaching the 2022 high of around NZD1.14 per Australian dollar in the coming months. This forecast highlights potential opportunities and risks for investors and traders in the forex market.
In conclusion, understanding the dynamics of the Australian dollar’s performance against various currencies can provide valuable insights for individuals looking to make informed decisions in the financial markets. Keeping an eye on key factors such as central bank policies and market trends can help individuals navigate the complexities of currency trading and potentially capitalize on opportunities for financial growth.