AUD/USD at 0.72 by year-end - Goldman Sachs

According to Philip Moffitt, the head of fixed income for Goldman Sachs Asia-Pacific Asset Management, the Aussie can be expected to continue declining into the 0.72 region through 2018.

Key highlights

Aussie could decline a further 5% against the USD as the rate differential between the US Fed and the Reserve Bank of Australia (RBA) widens.

Moffitt: "It's hard to be bullish on the Aussie" in thr face of lagging growth, inflation for Australia.

Moffitt, continued: "There's going to be a pretty decent period of sluggish growth without much inflation. We've also still got slack in the labor market - put all of these factors together and we're a few years behind the US on rates".