AUD/USD to remain below the 0.68 mark over the coming months – Danske Bank

FXStreet Insights Team FXStreet

The uncertainty related to financial stability concerns has weighed on risk-sensitive currencies, and not least the Australian Dollar. Economists at Danske Bank expect the Aussie to struggle to gain ground.

Easing financial stability concerns could provide a modest lift in the near-term

“While reopening in China and the boost to relative rates are supportive for AUD all else equal, we emphasize that the broader risk sentiment remains the main driver for now.”

“Easing financial stability concerns could provide a modest lift to AUD/USD in the near-term, but over the longer horizon, we expect the broad USD strength and push towards maintaining global financial conditions restrictive to weigh on the cross.”

“Forecast: 0.68 (1M), 0.67 (3M), 0.66 (6M), 0.66 (12M).”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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