FXStreet (Edinburgh) - Kristoffer Lomholt, Analyst at Danske Bank, expects the Aussie dollar to visit the 0.68 handle within a year’s time. Key Quotes “The change in AUD bets likely reflects diminished expectations of a dovish Reserve Bank of Australia at the 1 December meeting and as we now know the central bank indeed was very balanced maintaining the previous rhetoric as to the value of the AUD”. “We still expect AUD/USD to edge lower in the coming months as relative terms of trade and a looming Fed hike will weigh on the cross”. “We do not expect AUD/USD to collapse as (i) long term fundamentals, (ii) already aggressive pricing of monetary policy divergence, (iii) China stabilisation and (iv) stretched short speculative positioning will limit the downside potential”. “We forecast AUD/USD at 0.71 in 1M, 0.69 in 3M, 0.68 in 6M and 0.68 in 12M”. For more information, read our latest forex news.