AUD to hit high of US83 cents before dropping to US70 cents mid-2019 – ANZ

MELBOURNE - ANZ Bank has raised its forecast for the AUD, now tipping the currency to rise as high as US83 cents by the middle of next year before dropping away to US$70 cents by mid-2019.

It says the Reserve Bank of Australia is now expected to join the global tightening cycle, while global growth is stronger and broader than 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,” ANZ says.

“This is a period in which to remain nimble.”  www.live.anz.com (ATI).