US Dollar Index highest since 2004 as EUR plunges…AUD/USD below 80 cents but this mainly reflects US Dollar strength, not specific AUD weakness. The AUD has outperformed CAD and NZD since Jan 1st. Our AUD forecasts are unchanged, but others adjusted….Lower than expected Q4 CPI in NZ fuels (misplaced) speculation that the RBNZ will cut rates in 2015. Our forecasts for NZD are unchanged, and remain bearish…ECB action on QE stops short of ‘shock and awe’ but exceeded market expectations, propelling EUR/USD to an 11 year low of 1.1115. We now pick 1.08 for end-2015 and end-2016 (1.12 and 1.10 previously).
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