Australian Dollar Forecast: The US Dollar Revives
Forecast for the Australian Dollar: Bearish
The Australian Dollar is still vulnerable to a pirouette in the US Dollar. Although rate increases have come and gone, the debate is only becoming louder. As worries about a recession increase, sentiment keeps shifting. Where to trade AUD/USD?
Last week, the Australian Dollar suffered as a result of the US Dollar’s spectacular surge in response to growing recessionary concerns. On Wednesday, the Federal Reserve raised its target range by 50 basis points to 4.25% – 4.50%. The shift was generally predicted despite a slightly softer US CPI the day before.
Despite the addition of 64k jobs in November, Australia’s unemployment rate is still at multi-generational lows of 3.4%. This is in addition to a growing trade surplus from the previous week.
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