Global markets were mixed overnight, with Wall Street moving higher in a broad rally as technology shares recovered.
Both the Australian and NZ dollar have trended lower of late, and several market commentators suggest there is more to come. Morgan Stanley have suggested that investors position for further currency falls, with a forecast for the AUD to hit 65 cents against the USD by 2019 (compared to 75 cents currently).
Those who have followed us will know we have been US dollar bulls for some time now, primarily on the back of US interest rates moving higher, and the massive unwind of stimulatory measures used to help support the economy during the global financial crisis. We would point out that assuming the US Federal Reserve hikes the Fed Funds rate next week, the Fed rate will now be at the same level as the RBA cash rate. Th...
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