- Analytics
- News and Tools
- Market News
- AUDUSD: Tough financial market conditions will weigh on the aussie before recovery can take hold – MUFG
AUDUSD: Tough financial market conditions will weigh on the aussie before recovery can take hold – MUFG
During June, the Australian dollar depreciated against the US dollar from 0.7167 to 0.6888. Beyond some near-term challenges, the outlook for AUD is better. Therefore, economists at MUFG Bank expect the aussie to recover by the end of the year.
Global growth concerns are beginning to weigh more on AUD
“We see risk potentially deteriorating further with corporate earnings coming under pressure, corporate credit worsening and inflation remaining elevated over the short-term. The speed in which the Fed and other central banks are now hiking will have a negative impact on risk, the global growth outlook and hence AUD.”
“Easier policy in China and the lift to growth as lockdowns end should boost AUD demand into year-end and in 2023. By then too, the inflation angst undermining investor confidence should also have eased and with by then asset prices more aligned with downside growth risks, there will be scope for some AUD recovery.”
“The market is currently priced for around 225 bps of RBA rate hikes which we do not believe will be delivered. But it will be similar for the Fed as well and that will be the catalyst for some broader reversal of US dollar strength, helping lift AUD/USD.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
