AUD/USD: Goldman Sachs expects a drop to 0,72 by the end of the year

In an analysis released today, Goldman Sachs is predicting a drop of the AUD/USD to 0.72 by the end of the year, compared to around 0.7560 currently.

Goldman Sachs justifies this prediction by the fact that the RBA should not raise rates before a few years have passed, whereas the Fed has already started the process of monetary normalisation.

In addition, the bank expects "a period of sluggish growth for Australia, without too much inflation, with a labour market that still has gaps."