Relative rates and growth to weigh on Aussie – Danske Bank – Crypto News – Crypto News
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AUD/USD is volatile around the Powell speech, but focus is on downside while below 0.7000 AUD/USD is volatile around the Powell speech, but focus is on downside while below 0.7000

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Relative rates and growth to weigh on Aussie – Danske Bank – Crypto News

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The late 2023 rally in AUD/USD has faded somewhat in early 2024. Economists at Danske Bank analyze the pair’s outlook.

AUD/USD remains firmly in the hands of global risk sentiment

With Australian leading indicators pointing firmly downward, and US economic data still remaining solid, we expect relative rates and growth to weigh on AUD/USD going forward. 

AUD/USD remains firmly in the hands of global risk sentiment, where the outlook for inflation and rate cuts remains a key driver. 

We generally think that the Fed will opt for a more gradual pace for rate cuts, which will be a supportive factor for broad USD. We maintain our downward-sloping forecast profile unchanged.

AUD/USD Forecast: 0.6600 (1M), 0.6400 (3M), 0.6300 (6M), 0.6200 (12M)

 

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