- Analytics
- News and Tools
- Market News
- AUD/USD to face downward pressures on the back of receding risk-on momentum – HSBC
AUD/USD to face downward pressures on the back of receding risk-on momentum – HSBC
On 6 September, the Reserve Bank of Australia (RBA) issued a 50 bps rate hike. However, economists at HSBC expect the AUD to weaken against the “safe-haven” USD in the current risk-off environment.
Aussie faces weakening pressure
“It is far too early for the RBA to judge the full economic impact of the rate hikes (225 bps in just 126 days), although the cooling housing market and rising interest burden are expected to start to weigh on consumer spending in the coming months.”
“As the cash rate is now near the RBA's estimated neutral rate and given this outlook, we expect the RBA to slow the pace of its hiking soon.”
“The AUD has not been very responsive to rate announcements by the RBA over the past year instead it has been more sensitive to the change in market-wide risk appetite. With that in mind, we expect the AUD/USD pair to face downward pressures in the near term, on the back of receding risk-on momentum.”
© 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
