He Australian dollar (AUD) has been one of the worst-performing G10 currencies at the beginning of 2024. Economists at Danske Bank analyze the outlook for the AUD.
The RBA kept its monetary policy unchanged in February
The Reserve Bank of Australia (RBA) kept its monetary policy unchanged in February. Although inflation slowed more than expected in the fourth quarter, the RBA's communication remained hawkish due to persistent tensions in labor markets and high domestic price pressures in the services sector. Markets estimate that the first rate cut will not occur until August/September, but we see the risks leaning towards an earlier start to the cut cycle.
The latest downward movement of the cross has aligned well with our expectations, and we maintain a bearish forecast profile also for the future. The strong macroeconomic outlook in the US, relative pricing by central banks and sluggish growth in China, Australia's largest export market, weigh on AUD/USD going forward.
Forecasts: 0.6500 (1 month), 0.6400 (3 months), 0.6300 (6 months), 0.6200 (12 months)
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
