I anticipate US Dollar remains strong until May/June. The US 2 year swap rate during that time will continue to provide support for green buck. The swap cost of EUR into USD, continue to be high especially for European central banks. More concerns about recession in Eurozone will result in demand for US currency.
Aussie Dollar remains strong:
- Global economic growth Is estimated to be around 4%;
- Economic growth in China is more likely to continue to around 8.8 % this year. As a consequence of that commodity prices are going to be stable and supported by Asia economic growth;
- Further rate cut more likely in March will result in depreciation of AUD but it won’t have long lasting effect;