NAB: Short-term downside risk for the Australian dollar outweighs upside risk

Golden Ten Data reported on March 5 that Ray Attrill, Head of FX Strategy at National Australia Bank (NAB), stated that in the short term, the downside risk for the Australian dollar outweighs the upside risk. If the Iran conflict is short-lived, the fundamental factors supporting the Australian dollar should quickly come back into play; however, if there are signs that the conflict is evolving into a prolonged situation, the Australian dollar will be more susceptible to downward pressure. Currently, the fundamentals remain supportive and the economy is expanding. However, if oil prices rise sharply, it could trigger a larger scale of risk aversion. During periods of heightened uncertainty, the Australian dollar remains a currency that "falls like dropping down an elevator shaft."