A ‘miracle’ needed to see AUD above 70 cents this year
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7 September 2022
He says that the central bank’s statement seems to suggest monetary policy has reached neutral territory and that markets have begun expecting smaller rate hikes of 25 basis points between now and February next year. So, what might this mean for the Australian Dollar?
Well, according to Patrick, “it’s going to be a miracle for us to be above 70 cents by December”. He explains why a significant catalyst in Asia will be needed to see a recovery in Australia, but why – because of the downside in China – there will be limited influence from China on that front. Patrick also turns his attention to the “disorderly” Japanese yen – a currency that’s generally a safe-haven under normal circumstances, but not against the current macroeconomic backdrop, which has been impacted by the global energy sector.
Watch full interview here.
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