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Forex Flash: RBA will need to cut significantly; 2.25% expected by Sept quarter - NAB
FXstreet.com (Barcelona) - While the Australian Dollar continues
to trade at hefty level around the 1.06 vicinity, NAB economist
Robert Henderson vaticinates that the Australian economy will
continue to weaken and unemployment rising "noticeably through
2013", thus he suggests, "the RBA will need to cut significantly
further than previously expected in 2013."
Mr. Henderson adds: "We now expect a terminal cash rate of 2¼% in the September quarter of this year. We continue to expect the Australian dollar to track gradually lower during 2013, as the combination of continuing RBA rate cuts and a firmer US dollar weigh on the currency. Nonetheless our forecast of around parity in late 2013 still represents a strong currency."