AUD/USD remains at the mercy of the robust greenback. Therefore, economists at Rabobank believe that the aussie could sustain further losses in the short-term.

EUR/AUD could drop below 1.50

“Given our expectation that USD strength is set to persist, we see risk of AUD/USD dipping back a little further in the near-term. However, Australian fundamentals are relatively strongly positioned.”

“We favour the AUD vs. both the EUR and the GBP (despite the likelihood of larger incremental rate hikes from the ECB and the BoE) and see scope for AUD/USD to move back to 0.64 early next year.”

“We see scope for EUR/AUD to drop below 1.50 on a three-month view.”