I posted earlier that ANZ now expect the RBA to hike rates twice in 2018 (25bps in May, then again in H2)
More now, this time they've hiked their forecast for AUD/USD
- We have raised our forecast for the AUD, and now expect that it will rise as high as USD0.83 by the middle of next year
- The RBA is now expected to join the global tightening cycle, while global growth is stronger and broader than we have seen for some time
- We are not however getting carried away over a longer time horizon, risk appetite will once again come to dominate markets as tighter liquidity starts to bite. This will be outright negative for the AUD.
- This is a period in which to remain nimble.
