CityDX analysts provided insights into the performance of the Australian dollar against various currencies, and predicted a difficult path against the Australian dollar.
According to the brokerage, the recent sharp decline in the AUD/JPY exchange rate points to a long-term ceiling that formed just below 110 yen to the Australian dollar last month. They expect any rebound to be between the 100-day and 200-day moving averages, which currently range between 100 yen and 102 yen to the Australian dollar.
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Analysts also expect the AUD/JPY pair to fall below recent lows of around 90 yen to the Australian dollar next year. As for the near-term outlook for AUD/USD, Citibank expects the recovery to peak at 0.67-0.68 USD/AUD, with a potential decline to 0.63-0.64 USD in a risk-free environment at the end of the year.
Unlike its performance against the yen and the US dollar, the Australian dollar is expected to rise against the New Zealand dollar. This outlook is supported by the RBN’s decision to ease monetary policy, which Citibank believes likely marks the bottom for AUD/NZD at around NZD 1.09.
Citibank expects the AUD/NZD exchange rate to rise to NZ$1.11 to NZ$1.12 in the near term. Moreover, analysts will not be surprised to see the pair reach its 2022 high of around 1.14 NZD per Australian dollar over the next few months.
This article was translated with the help of an artificial intelligence program after an editor’s review. For more details please refer to Banha Terms and Conditions
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