Audusd To Move Higher

last updated on

Audusd To Move Higher

Aud/Usd To Move Higher Towards 0.69

Dankse Bank has issued a new forecast for AUD/USD in which they see the pair heading higher. According to the bank, the AUD/USD pair will touch 0.69 over a duration of 12 months.

It's worth noting that the forecast from the Danske Bank is bullish for the AUD and bearish for the US Dollar. Meanwhile, the risk appetite remains solid as even the Chinese Yuan is moving higher.

Aud To Remain Bullish On Hawkish Rba

The strength of the Chinese Yuan is also helping the Australian Dollar against the US Dollar. So over the course of the next 12 months, the bank believes that AUD will remain steady.

The bank also added that the US Dollar will turn vulnerable in the coming months. So, that's also a factor which will push the AUD/USD towards 0.69.

The recent data coming from Australia is also helping the Aussie Dollar to push higher. For starters, the inflation data was higher than forecast, which will also make it tough for the RBA to lower the rates.

The recent jump in inflation is also attributed to the electricity rebates, as experts believe a decline in prices from next month. So, that's a factor which will push the headline inflation lower.

But, Dankse Bank remains uneasy over the inflation situation as many factors are pointing towards a leg higher. So, Danske Bank holds the view that higher inflation will force the RBA to keep the rate cuts on hold.

In fact, a sudden surprise jump in the inflation index could even force the RBA to issue a rate hike. In that case, the market participants will rush towards buying the Australian Dollar against the greenback.

The bottom line is that Danske Bank believes in a bullish RBA on account of higher inflation. As a result, the AUD is expected to gain against the USD and other currencies in the next few quarters.

Trending Stories