By way of Westpac, their newest Australian greenback outlook:
- The Russia-driven provide squeeze ought to preserve a ground underneath vitality costs, strengthening Australia’s already giant commerce surpluses.
- However Aussie rallies needs to be capped in opposition to a US greenback backed by the Fed’s dedication to stay aggressive on charge hikes till there may be compelling proof of core inflation rolling over.
- With world threat urge for food nonetheless fragile and markets reluctant to cost in a pointy restoration in Chinese language development simply but, the A$ in coming weeks appears prone to falter again to the 0.68-0.69 space, albeit avoiding the July lows sub-0.67. Into early This autumn, scope for 0.71 as markets value a tapering in Fed tightening tempo.
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