Analysts at Credit Agricole note that Australian dollar wasn’t successful at the beginning of the year trading versus its US counterpart. In their view, Aussie has more difficulties on its way: the currency will find itself under the negative pressure as investors aren’t sure any more that the Reserve Bank of Australia will lift up interest rates, while export income will lower due to the flooding that causes mining disruptions. In addition, the specialists underline that no one can predict what the extent of damage from flooding will be.

According to Credit Agricole, there’s the chance that the pair AUD/USD will fall to the technical support at 0.9752 or possibly even lower to the 0.960/70 zone. The analysts, however, underline that any decline of Australia’s dollar will be temporary providing better levels to buy the currency.

The strategists expect AUD/USD to finish the first quarter at 1.02. By the end of the year the pair’s rate is likely to reach 1.06, claims Credit Agricole.



Chart. H4 AUD/USD

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