Australian Dollar Forecast Levels from National Australia Bank

National Australia Bank (NAB) give us their latest currency forecast table for 2015.

Key Takeaways:

• A$ to trend lower in 2015
• increased speculation of a rate cut by the RBA in early 2015.
• caution that lower oil and the lower $A mean the economy is already receiving a boost to medium-term growth.
• We continue to look only for an evolution in the Bank’s language at the February Board meeting ahead of a possible cut in March. If there is no such evolution, then a cut in March is most unlikely.
• iron ore prices have traded to new lows, the US$ continues to gain, all forces which suggest the risk of further downside.