Danske Research discusses AUD/USD and NZD/USD outlook and maintains a neutral bias into year-end.
Both New Zealand and Australia continue to face downward pressure but relatively less so than a few months ago. We continue to expect AUD to trade in the range of 0.67-0.70, depending on the global mood of the month.
We change our near-term forecast to reflect renewed global optimism and maintain the long-term view that the global cycle could rebound slightly as we enter 2020," Danske notes.
"In an historical perspective, we continue to see NZD and AUD as being quite weak. We set AUD/USD at 0.69 in 1M and 3M (revised from 0.67)). NZD/USD at 0.645 in 1M and 3M (from 0.62)," Danske adds.