AUD and CAD to face downside pressures over the near term, before a bumpy recovery in 2023 – HSBC

FXStreet Insights Team FXStreet

In the view of economists at HSBC, both the Australian Dollar and the Loonie are likely to face risk sentiment challenges over the near term, before a bumpy recovery in 2023.

Near-term challenges

“If the coming weeks bring a fresh bout of risk aversion (amid a still hawkish Fed, global growth concerns, and reasons for caution elsewhere), then both the CAD and AUD are likely to weaken against the USD.

“Our medium-term view is that both commodity currencies will probably be on a bumpy recovery path in 2023, as the Fed’s hiking cycle comes to an end.”

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FXStreet Insights Team

FXStreet

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