UBS is bullish on the Australian greenback in 2024, citing ” compelling domestic reasons for AUD resilience”:
- lengthy AUD stays considerably of a worth proposition
- commodity costs have been resilient regardless of a nonetheless uninspiring China backdrop
On the RBA:
- “We think that additional tightening is very unlikely at this stage”
- “Tone of Governor Bullock’s press conference was somewhat hawkish, which should be seen as AUD-supportive in the context of the RBA needing to reaffirm some of its inflation-fighting credentials”
- UBS count on the primary RBA reduce in August 2024, however says the chance is for later … see 25bp cuts per quarter to observe
This text was written by Eamonn Sheridan at www.forexlive.com.
