#AUDUSD @ 0.68687 -imp levels: : Risk aversion and yield differentials to create near-term downside pressures – HSBC
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AUD/USD has dived below the 0.69 mark. Economists at HSBC expect the aussie to face more headwinds ahead.
“Risk aversion amid slowing global demand and yield differentials would likely create near-term downside pressures for the AUD.”
“For the Reserve Bank of Australia (RBA’s) next meeting on 6 September, the market is priced for 39 bps of tightening (Bloomberg, 18 August 2022), while we think that the central bank should pivot soon to deliver a ‘soft-landing’. This will likely lead to AUD weakness.”
“Some recent softening activity data in China, contributing to a global downtrend, would probably weigh on the AUD, given Australia’s high exposure to trade.”
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