AUD/USD: Aussie to gain a tailwind ahead – CIBC
|Analysts at CIBC point out the Australian Dollar should receive a lift from broad US Dollar weakness in 2023, and demand for exports supported by China's re-opening.
Key quotes:
“We are maintaining our view of a stronger AUD going forward. This is largely predicated on our forecast for a weaker US dollar, alongside the benefits from the ongoing reopening of China’s economy. Earlier this month, the RBA announced that they would hold the policy rate at 3.60%, while softening language around the need for more rate hikes. However, we expect one more 25bps hike for the RBA in early May, given our expectations of a firm upcoming CPI print, and still hawkish rhetoric from Governor Lowe.”
“Overall, a broadbased decline in the USD, alongside Chinese demand for Australian exports should continue to lift the AUD over the medium-term.”
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