Outlook for the AUD into 2018

Barclays on their AUD outlook for the coming year

• We see AUD underperformance against GIO currencies
• Australia's growth and inflation are likely to remain subdued. green its late-cycle position, secular adjustments in the commodity sector and downside risks to construction activity and investment.
• The AUD remains overvalued. and its carry advantage over the USD is likely to continue to narrow, with the US leading in monetary tightening into H2 2018 by our forecasts.
• China's economic rebalancing. corporate deleveraging and curbs on property speculation mean moan that any rebound n commodity pines is unlikely to be durable. Our commodity analysts forecast China sensitive commodity prices to remain suppressed.