The Aussie dollar may slide toward the low 60 U.S. cent area in 2015, Deutsche Bank AG said in a report this week. Of course, the downtrend has been running now since global manufacturing peaked last in 2011, but recognition is finally reluctantly spreading through the analyst community. As my firm has been highlighting for the past 4 years, in the aftermath of the credit bubble, diminished demand and strong global supply of commodities are continuing to weigh heavy on exporters. See: China Iron Ore Makes Insight Aussie bear; Deutsche Bank sees 60s
Although Canada is often strangely ignored in this discussion, the loonie has traditionally tracked closely with the land down under’s dollar as shown in Cory’s chart below. Mid 60’s would be secular support for the C$ as well.