Currency strategists at UBS are looking forward to more declines in the pair AUD/USD as the pair’s trading in the 0.9840/80 area close to the year’s minimum at 0.9804.

While interest rate support for the AUD remains structurally strong, momentum around this factor is starting to wane as RBA’s rate hike expectations are delayed on weaker weather-affected data, while encouraging US figures raise the risk of earlier removing of the Fed’s quantitative easing.

According to the specialists, Aussie will fall to 0.9700 by the middle of the year and to 0.9300 by the end of 2011.



Chart. H4 AUD/USD

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