By Swati Pandey
SYDNEY (Reuters) – Foreign exchange analysts expect the Australian and New Zealand dollars to rebound next year, a Reuters poll showed, even as fears of a global slowdown loom over the battered currencies.
A Reuters survey of up to 45 analysts saw median predictions for the Aussie at $0.7285 <aud=d3>on a one-month horizon, from $0.7100 in the previous poll and current levels of $0.7220.</aud=d3>
Analysts marginally bumped up their projections for 3 months to $0.7300 while retaining their outlook for six- and 12-months at $0.7300 and $0.7500.
Such expectations come amid renewed downward pressure on the Australian currency, which has shed 7.7 percent since the start of the year. It hit a 2-1/2 year trough of $0.7021 in October.
The trade-exposed currency has been used by investors to wager on, or hedge against, tensions in emerging markets and the risks to the Chinese economy from U.S. tariffs.
In addition, underwhelming recent data at home has led investors to completely wipe out the chance of a rate rise until mid-2020, further weighing on the Aussie.
While the Reserve Bank of Australia (RBA) has repeatedly stated that its rates will remain at historic lows for some time to come, futures markets are now pricing in a small chance of a cut following disappointing economic growth data on Wednesday.