AUD/USD: The rise is exaggerated, and a return to 0.7000 is expected says CIBC

On the occasion of an analysis published today, CIBC believes that the rise of the AUD is exaggerated:

"The AUD/USD climbed from under the threshold of 0.7000 to 0.7400, and the AUD is one of the few currencies that has risen against the dollar last month.

It's true that the Australian economy is performing better than had been anticipated, however, the Australian trade deficit is quickly deteriorating, and there is room for expectations about the Australian economy to reverse once again.

We therefore expect the AUD/USD to fall to 0.70 in the first quarter 2016."