Forex Flash: AUD has peaked cyclically; targets 0.92USD by year end - ANZ

FXstreet.com (Barcelona) - Analysts at ANZ believe that “the AUD has peaked cyclically, and the NZD is likely to be in a broader peaking phase,” they add. “Domestic Australian fundamentals have been deteriorating for some time, indicating that the key questions relate to the timing of a sustained currency decline, rather than its existence,” the analysts suggest.

“More broadly,” the analysts expand, “the key development has been a shift away from the diversification dynamic, which kept peripheral currencies more expensive than justified by domestic fundamentals.”

“We now forecast the AUD at 0.92 and the NZD at 0.81 in December 2013,” they conclude.