FXWire Pro Headline | January 22 2013 4:05 EST
Quotes from Barclays Capital:
-AUD/USD stretched valuation, reduced interest rate differentials, and slowing safe-haven demand consistent with fading global tail risks suggest it will likely depreciate beyond Q1.
-Our economists forecast Australia GDP growth will decline to 2.7% y/y in 2013 from 3.6% y/y in 2012 and look for GDP growth to be lower than that of the US in 2014.
-In addition, a deteriorating trade balance is likely to contribute to a widening current account deficit this year. As such, we forecast AUD/USD will reach 1.02 in 6 months and 0.98 in 12 months.