NAB Research discusses AUD/USD outlook and expects the pair to trade around 0.76-71 range through the first half of 2020.
"Our 0.69 end-2019 forecast currently assumes a Phase 1 ‘trade truce’ with no new US tariffs but no wind back of existing ones, in which case the CNY is seen shifting from being a negative to a neutral force on AUD. Agreement to wind-back the Sep 1st tariffs would open up downside risk on USD/CNY to ~6.80 and with it upside risk for AUD/USD ," NAB notes.
"Competing forces (e.g. RBA QE vs. a generally weaker USD) could well leave AUD/USD stuck in a ±0.670.71 range, through H1 2020 at least," NAB adds.