Australian Dollar Forecast: Bearish
- The Australian Dollar remains susceptible to a US Dollar pirouette
- Rate hikes have come and gone but the rhetoric is just ramping up
- Sentiment continues to sway as recession fears grow. Where to for AUD/USD?
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The Australian Dollar was crunched last week after the US Dollar put on a stellar rally amid rising recession fears. The Federal Reserve hiked by 50 basis points to target 4.25% – 4.50% on Wednesday. The move was widely anticipated despite a softish US CPI the day prior.
The Australian unemployment rate remains at multi-generational lows of 3.4% after 64k jobs were added in November. This comes on top of a burgeoning trade surplus from the week before.
The rest of the fundamental picture is a bit mixed going into the end of the year with building approvals and retail sales data underwhelming. RBA rate hikes appear to have had an impact on those figures.
Nominal GDP remains robust…
