AUD/USD could rally to 0.74 sooner than expected – SocGen

Australian dollar likely to remain G10 currency of choice given its bullish implications for China-sensitive currencies. A) Yes, the AUD/USD pair could reach the 0.74 level sooner than expectedas suggested by Société Générale economists.

Asia should benefit from China’s recovery, lifting the Aussie

“As Australia is a major exporter of raw materials, including energy, metals and agriculture, there are clear direct benefits of a quick Chinese reopeningbut may be less important than the impact of improving the broader Asian economic outlook, which would help the Australian economy.”

The Aussie has been held back by the fact that the RBA has been less aggressive in tightening monetary policy than other central banks, but a boost to exports in the coming months, as the Federal Reserve nears the end of its tightening cycle, could see AUD/USD move towards our year-end target (0.74) sooner than expected.”

Source: Fx Street

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