(Bloomberg) Australia’s dollar is set to rally as easing U.S.-China trade tensions bolster risk assets, according to the currency’s top forecaster. Funds including AMP Capital Investors Ltd. and QIC Ltd. are bearish.
The Aussie’s recent declines are overdone and it will strengthen about 5 percent to 74 U.S. cents by year-end, said Juan G. Perez, senior foreign-exchange trader and strategist at Monex Inc., part of the Monex Group that submitted the most accurate prediction for the currency in Bloomberg’s first-quarter rankings.
“Developments in trade are what can turn the tide, and fast,” Washington-based Perez said this week. “There is room for growth and as Oceania activity picks up with renewed infrastructure projects, the Aussie could surprise.”
TEMPUS isn’t the only one predicting Aussie gains. Bank of America Corp. last month forecast the currency will rise to 78 cents by year-end as the trade war fizzles out, while Goldman Sachs Group Inc. recommended going long to capitalize on improving Chinese growth.
