JBWereGS have released new FX forecasts. Basically suggests that USD will continue to be fairly strong over the next three months, but then depreciate substantially (10-15%) against Euro and Yen during our Spring. They forecast a 100 point rise in US interest rates this year, but because of higher inflation (thus steady real interest rates), plus high US debt / deficit levels, the current USD appreciation based on interest rate expectations will not be sustained. AUD will recover to 75c, but not get back to its highs of early this year.
Be interesting to see how accurate this is come say Xmas. Guess US elections may also have an effect too.
