FXWIREPRO: Reasons for Safeguarding Aussie Export Payables, a Glimpse on the AUD/USD Hedging Drivers

FXWIREPRO: Reasons for Safeguarding Aussie Export Payables, a Glimpse on the AUD/USD Hedging Drivers

11 April 2016, 11:57
Roberto Jacobs
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FXWIREPRO: Reasons for Safeguarding Aussie Export Payables, a Glimpse on the AUD/USD Hedging Drivers

Over the longer-term, we expect AU growth to remain subpar and AUD to drift lower.

But, there have been a few key things to watch out in H2 of 2016.

  • Federal election must be held by Jan 2017 (more fiscal consolidation activities are expected).
  • The governor Stevens retires in Sept 2016 (avoid probable monetary policy divergence).
  • AU’s current account deficit is also worth tracking.
  • In contrast, Federal Reserve's hiking season should not be disregarded.

Although, AUD/USD pushed higher to the 2016 highs, the pair is forecasted to remain at 0.74 by Q2'2016, at around 0.72 by Q3'16 and travel towards 0.67 by the end of H2 of 2016.

Hence, AUD depreciation is anticipated and advised to be hedged AUDUSD's downside risks.

The material has been provided by InstaForex Company - www.instaforex.com



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