In a note today, Deutsche Bank advises clients to consider entering strategic short AUD/USD position from here targeting a move to 0.60 by the end of the next year. "Australia is suffering from an income recession. The primary transmission channel for the terms-of-trade shock is mining investment, rather than net exports. Only improvement in the external account, however, can prevent the income recession from feeding into a growing output gap and greater disinflation in 2016. That requires a substantially weaker exchange rate. We show that excessive imports are the main drag on output. The RBA hopes for rising ... (full story)