What is MM’s current outlook on the AUD v USD?
I am interested in what view Market Matters has on what the USD will do over the coming 12 months particularly in comparison to the AUD?
The Latest Q&A
Answer
Hi Ian,
The AUDUSD is a cross rate we look at very closely and usually, we have a clear-cut view however as we enter May we’re expecting a roadmap of 2 halves:
- Over the next few months we are looking for a bounce by the $US back towards the 105 area i.e. 4-5% higher. This by definition implies the $A will struggle to rally much above the 65c area as inflation fears weigh on markets and in particular commodities based currencies.
- However medium to longer term we are very bullish on the commodities/resources space which suggests the $A will rally strongly with the 80c area back on the table in our opinion.
