UBS says US dollar to lose shine as 2024 progresses, like holding AUD (citing RBA rates)

UBS sees a well-supported USD in the months ahead, citing comparatively resilient US economic data, but are wary of it weakening slightly as 2024 progresses. UBS say that would be in response to significantly slowing US economic data, and Fed policy. A such UBS is looking to sell US dollars into rallies.

UBS hold a ‘most preferred’ view on the Australian dollar, citing risks of another hike by the Reserve Bank of Australia and also for the Bank to hold rates elevated until at least the final quarter of 2024 as it continues to battle inflation:

  • like AUD against EUR, CNH, USD

This article was written by Eamonn Sheridan at Source