BEARISH bets for the Australian dollar are turning savage, with Credit Suisse slashing its 12-month forecast to US75 cents after conceding the currency is "normalising" quicker than it expected.
In what may be the biggest dollar call by a major bank in the market, Credit Suisse overnight slashed its 12-month forecast for the dollar to US75c. It comes after Credit Suisse in May made one of the first downgrades, cutting its 12-month bet to US85c.
“It has become clear to us that the process of ‘normalisation’ is occurring more quickly than even we had anticipated,” said the bank’s London-based head of commodities research Ric Deverell. “To that end today we revise our three-month forecast to US87c, and our 12-month forecast to US75c.”
Experts have in recent months revised lower their Aussie forecasts as the US Federal Reserve signals the tapering of its stimulus program and China slows, with National Australia Bank, Westpac and Goldman Sachs lopping their targets last week.
