13.03.2015 - Australian currency according to our estimates will continue to fall
The price of the Australian dollar resumed its decline. Analysts note that the Reserve Bank of Australia underestimate the slowdown in growth in China. Thus, the growth of GDP of the second largest economy in the world can make less than 7% per annum which will be negatively displayed on the prices of raw materials, which is the main export commodity group in Australia. In addition, the growth of the Australian economy is expected to reach 2.4% in 2015 and 2.8% in 2016, which is not enough for sustained growth in the number of jobs in the country. We maintain our medium-term negative outlook for the Australian dollar and we expect a drop in prices to levels 0,70-0,72 in the medium term.