HSBC economists continue to expect a slightly weaker AUD against the USD in the coming months.
Medium-Term Three-Factor Bearish Outlook for AUD
We continue to maintain our medium-term three-factor bearish view for AUD.
Firstly, slowing US growth would not be good news for the AUD as it would likely combine with weak growth elsewhere to raise concerns about global growth and weigh on risk sentiment. .
Secondly, AUD/USD has not benefited much from favorable relative rate movements of late, but rather suffered from unfavorable movements. This asymmetry should last, if markets focus on more dominant negative themes.
Third, our baseline assumption remains that China’s growth prospects will not be a supportive factor for currencies in the near term.
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.
