(Bloomberg) Australia’s dollar won the wooden spoon among Group-of-10 currencies last year, beating its New Zealand cousin in a race to the bottom. This year the contest is a race to the top.
The best forecaster for both currencies last quarter says the Aussie is likely to outperform.
“The Australian dollar could have an edge and this opinion is based on how that currency certainly has more ground to recover,” said Juan G. Perez, senior foreign-exchange trader and strategist at Monex Inc. in Washington. “Australia is also working on multi-billion dollar infrastructure projects, so the materialization of this ambition could lead to the Aussie’s resurgence against its major counterparts.”
The Aussie will advance to around 74 U.S. cents by year-end, while the kiwi will be little changed from its current level at 69 U.S. cents, Perez said.
