UBS is bullish on the Australian dollar in 2024, citing ” compelling domestic reasons for AUD resilience”:
- long AUD remains somewhat of a value proposition
- commodity prices have been resilient despite a still uninspiring China backdrop
On the RBA:
- “We think that additional tightening is very unlikely at this stage”
- “Tone of Governor Bullock’s press conference was somewhat hawkish, which should be seen as AUD-supportive in the context of the RBA needing to reaffirm some of its inflation-fighting credentials”
- UBS expect the first RBA cut in August 2024, but says the risk is for later … see 25bp cuts per quarter to follow
This article was written by Eamonn Sheridan at www.forexlive.com. Source