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AUD/USD to experience strong recovery in the new year – ING

The crossfire that had plagued the Australian dollar throughout the month of August (a combination of high US rates and a collapse in Chinese sentiment) has not ceased since the beginning of September. ING economists analyze the outlook for the AUD/USD.

We are still looking for a floor

Looking ahead, we expect US growth/Fed easing, and in turn the global USD story, to be the key driver for AUD/USD. This is not to say that China will take a backseat, but much of the deterioration in Chinese growth is already priced into the AUD, and things could gradually improve from here with the monetary and fiscal stimulus being rolled out. in Beijing.

AUD/USD may still be searching for its bottom, but we still like a strong recovery heading into the new year, in line with the USD’s history of decline.

Source: Fx Street

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