The Australian Dollar (AUD) weakened slightly in February against the US Dollar (USD), falling from 0.6596 to 0.6503. MUFG Bank economists analyze the outlook for the AUD.
Gradual appreciation beyond near-term risks
Growing prospects of a soft landing for the global economy help provide support to the AUD, while domestic conditions could hold up better than expected.
China and global conditions will continue to be important for the RBA, but with major central banks starting to cut in the summer, it may have to wait until September for the RBA to cut.
If the global economy manages a soft landing, then the prospects for AUD/USD are good to see an eventual break above the 0.7000 level.
AUD/USD – Q1 2024 0.6600, Q2 2024 at 0.6700, Q3 2024 at 0.6800, Q4 2024 at 0.7100.
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.
