AUD/USD: BEARISH FORECAST PROFILE GOING FORWARD – DANSKE BANK
The Australian Dollar (AUD) has been among the weakest performing G10 currencies in early 2024. Economists at Danske Bank analyze Aussie’s outlook.
RBA maintained its monetary policy unchanged in February
The Reserve Bank of Australia (RBA) maintained its monetary policy unchanged in February. While inflation slowed down more than expected in Q4, RBA’s communication remained hawkish due to still tight labour markets and elevated domestic price pressures in the services sector. Market prices in the first rate cut only by Aug/Sep, but we see risks tilted towards an earlier start to the cutting cycle.
The latest move lower in the cross has been well aligned with our expectations, and we maintain a bearish forecast profile also going forward. Solid macro-outlook in the US, relative central bank pricing and sluggish growth in the key Australian export market China all weigh on AUD/USD going forward.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.