Aussie AUD/USD Forecast 2014

The Aussie dollar, the world's fifth most traded, was at 92.99 yen up 3.1 perecent since Dec 31. It bought 89.17 US cents after falling 14 percent this year. The median of forecasts compiled by Bloomberg News is for the currency to fetch 95.90 yen and 88 USD cents by end-2014.
Japanese investors held about A$180 billion Australian dollar debt at the end of last year, the latest Bank of Japan figures show. The data don't specify what proportion are government securities. Australia had A$267 billion of government securities outstanding at the end of 2012, according to the nation's funding unit.

Reserve Bank governor Steven said this month he would prefer the currency to fall 85 US cents, in an interview with the Australian Financial Review. The RBA governor has repeatedly emphasized his outlook for Aussie declines over the past two months and said Dec,18 in Parliament that he's also open to further rate cuts if needed.

Interest-rate swaps indicate there's about a 30 percent chance of the RBA cutting its benchmark from a record-low 2.5 percent to 2.25 percent or less in the first half of next year.