Forecast revisions extended to the AUD/USD spot rate, with our end-2020 forecast revised up to 74c, up 2 cents from the previous iteration, alongside reach 80 cents first half of 2022. A crucial argument for our expectation of a lower USD in 2020 and beyond is the sharp compression in previously USD-favouring interest rate differentials. This yield compression was and still is more apparent in real rather than nominal terms, an important distinction, as ultimately it is interest rate differentials adjusted for relative inflation rates in different countries that matters most for currencies. Historical analysis also ... (full story)