Forex Flash: AUD to fall in second half of this year - RBS

FXstreet.com (Barcelona) - According to Greg Gibbs, FX Trading Strategist at RBS: “We continue to forecast a fall in AUD in the second half of this year,” the analyst notes, adding: “At which time we may see a weaker outlook for the Chinese economy slow the capital inflow to CNY at the same time as the government in China may be tightening lending conditions and attempting to cool the Chinese property market.”

Greg expands: “A higher CNY combined with a weaker export outlook for China (undermined by the stronger CNY itself) will at some point discourage further capital inflow,” he concludes.