AUD/USD 0.7100 level for year end – UOB

By FXStreet FXStreet (Guatemala) – Analysts at UOB Group noted that the RBA, on Tuesday, left the cash rate at a record-low of 2.0%, but indicated that weaker inflation levels may allow the bank to ease policy again if needed.

Key Quotes:

“We continue to see the cash rate remaining at 2.00% for now, although we acknowledge that low inflation and major banks’ tightening may eventually force the hand of the RBA. At this juncture, we are keeping our AUD/USD forecasts intact, looking for the pair to hover around the 0.710-region into year-end.”

“Australia’s trade deficit was seen contracting in September as resource exports rose at a solid pace, indicating that the lower AUD is having a positive impact on the trade sector.”

“The merchandise trade gap narrowed some 15% from a revised AUD2.71bn in August to AUD2.32bn in September, and against expectations for a AUD2.9bn trade gap in September.”
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Source:: FX Street