The National Australia Bank has adopted a bearish outlook for the Australian dollar in 2027 based on a view that the Reserve Bank of Australia will cut the official cash rate 75 bps starting in 2Q 2027. NAB now forecasts the Aussie dollar-U.S. dollar pair will end 2027 at 0.6700, from its previous 0.7000 expectation, but the view allows for it to trade down to at least 0.6500 at some point. If the RBA cuts rates next year and the Fed sits pat, the outlook for the Australian dollar looks increasingly ominous, NAB adds. The pair now trades at 0.6919. (james.glynn@wsj.com; X @JamesGlynnWSJ)
Dow Jones Newswires
Australian Dollar Outlook Bleak With RBA Set to Cut in 2027, Says NAB — Market Talk
The National Australia Bank has adopted a bearish outlook for the Australian dollar in 2027 based on a view that the Reserve Bank of Australia will cut the official cash rate 75 bps starting in 2Q 2027. NAB now forecasts the Aussie dollar-U.S. dollar pair will end 2027 at 0.6700, from its previous…