- Analytics
- News and Tools
- Market News
- AUD/USD: Market pricing too much tightening in 2022 so aussie still looks vulnerable – MUFG
AUD/USD: Market pricing too much tightening in 2022 so aussie still looks vulnerable – MUFG
Despite the recent decline in AUD/USD, analysts at MUFG Bank, consider there is still scope for some further downside over the short-term. The see the Reserve Bank of Australia (RBA) is set to remain dovish.
Key Quotes:
“While we believe the RBA will have to hike sooner than the RBA’s current guidance of 2024, we doubt there is a compelling need to shift the guidance at this stage.”
“The market remains priced for around three rate hikes in 2022 and we do not expect the RBA outcome next week to be consistent with that. As well as mixed labour market conditions and limited evidence of wage growth picking up, Australia’s terms of trade has taken a negative hit with iron ore and coal prices both taking a tumble. With the RBA set to persist with QE until the February review and while the RBA could end QE at that stage, the contrast with the Fed over the coming months will keep downward pressure on AUD/USD.”
“AUD/USD is now down 8.25% year-to-date and at these levels is beginning to look stretched. However, with such a stark monetary stance, there is scope for some further downside over the short-term.”
© 2000-2025. 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
