Australian Bank Lower U.S. Dollar
According to Australia’s largest mortgage provider, Commonwealth Bank of Australia, the U.S. dollar will perform worse than experts previously expected for this year.
The strengthening financial crisis in the United States forced the Federal Reserve to cut rates at a greater pace than it was expected in the bank’s previous forecast. The U. S. dollar has already dropped about 5% against the Australian dollar and 3.9% against the New Zealand dollar from the beginning of the year. A major interest rate cut in U.S. is expected today, that can also hurt the dollar’s Forex positions.
Commonwealth Bank of Australia now says that the U.S. dollar is going to depreciate to 0.90 on AUD/USD by the year end; the previous estimate was at 0.85. As of 9:45 GMT AUD/USD is trading at 0.9260.
New Zealand dollar’s estimate was also lifted against the U.S. dollar — NZD/USD is now expected to trade at 0.75 against the 0.70 previous estimate. Currently NZD/USD is trading at 0.8078.
