Daily FNArena News - Currencies

Forex.com’s Kathleen Brooks predicts it might take a few weeks for Mr Market to get comfortable with AUD/USD at parity.

Stong capital flows have boosted Asian currencies against the US dollar in recent months and with policy normalisation measures expected to continue Commonwealth Bank sees this trend continuing.

FNArena welcomes ATW’s Jerry Simmons as new contributor. Simmons opens with a warning shot on the Aussie dollar.

The G20 did not achieve anything in the way of a swift end to the Currency War at its meeting, but a surprise shift in IMF voting rights may prove the impetus.

Westpac and Goldman Sachs have lifted Aussie dollar forecasts above parity with the USD.

The Australian dollar was sold off when the Reserve Bank of Australia held interest rates steady yesterday but Commonwealth Bank still expects parity against the greenback in coming months.

Commonwealth Bank forex analysts are forecasting parity for the Aussie next year.

The Japanese yen has strengthened to a 15-year high against the US dollar, putting pressure on the Bank of Japan to intervene.

Danske Bank has revised its foreign exchange assumptions, taking the view a mid-cycle slowdown would be supportive for the US dollar, the Japanese yen and the Swiss franc.

GFT’s Kathy Lien warns investors are probably better off ignoring the AUD, for now.