Australia’s dollar has tumbled 15 percent from its high last year and strategists forecast more pain ahead. For Goldman Sachs Group Inc., it’s the perfect time to develop Sydney as a hub for trading local-currency assets.
The Australian dollar will rise to a record and exceed parity with the U.S. currency as low volatility and the widening yield advantage boosts demand for the so-called Aussie, Commonwealth Bank of Australia said today.
The euro rallied to a two-month high against the dollar after European Central Bank President Mario Draghi said inflation is expected to rise gradually, damping bets policy makers will introduce further monetary stimulus.
Australia’s dollar fell, paring its first five-day gain in three weeks, while the New Zealand kiwi slid after the central bank governor said the currency’s level is a headwind for growth and unsustainable in the long run.