AUD/USD: Reaching the 0.69 year-end target will be a challenge – Scotiabank
|The AUD remains something of a laggard among G10 currencies so far this year. Economists at Scotiabank analyze Aussie’s outlook.
RBA tightening cycle may have peaked at 4.10%
The RBA tightening cycle may have peaked at 4.10%, with policymakers perhaps concerned that the passthrough of higher mortgage rates will slow the domestic economy.
Soft regional growth trends (China) and a weak Yuan have weighed on the AUD sentiment and speculative positioning has been persistently bearish in recent months.
Meaningful China stimulus would be a major plus for the AUD but, in the absence of more positive drivers, reaching our 0.69 year-end target will be a challenge.
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