- Analytics
- News and Tools
- Market News
- AUD/USD to decline amid tightening conditions and slowing growth – Danske Bank
AUD/USD to decline amid tightening conditions and slowing growth – Danske Bank
The recent easing in global financial conditions due to rising recession risks has provided moderate support for the Australian dollar. Nevertheless, economists at Danske Bank expect the AUD/USD pair to move downward over the next months.
Relative rates unlikely to provide much support for AUD/USD
“While we expect the Reserve Bank of Australia to continue hiking rates after the 50 bps hike in the August meeting, the weakening economic growth forces it to take a more meeting-by-meeting approach going forward. Market is already aggressively priced, and thus we do not expect relative rates to provide much support for AUD/USD.”
“We believe Fed will have to continue hiking rates aggressively, which will ultimately weigh on global growth. Environment of tightening financial conditions and slowing growth is negative for commodity currencies, and we maintain a downward-sloping forecast profile for AUD/USD.”
“Forecast: 0.69 (1M), 0.68 (3M), 0.67 (6M), 0.65 (12M).”
© 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
