AUD/USD is too low relative to the likely RBA rate path – SocGen
Economists at Société Générale analyze AUD/USD outlook after the release of Q3 Wage Price Index in Australia.
The RBA may need to remain hawkish
Today’s slightly higher-than-expected Q3 wage growth data in Australia (4% YoY), largely reflects an increase in the minimum wage. However, it leaves the RBA in a slightly less comfortable position than some other central banks as we reach peak rates.
As rate differentials move in the AUD’s favour, the currency still looks undervalued.
The 2-year rate differential is higher than it was pre-COVID when AUD/USD was at 0.70.
Reprinted from FXStreet_id,the copyright all reserved by the original author.
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.