HSBC analysis team suggests that the AUD is unlikely to rise against the USD and they remain bearish on the Australian currency.
Key Quotes
“For AUD to rise as the cons expects, it would require not only that global policy support leads to a revival in global growth (circa 2016), as opposed to simply a stabilisation but also that this is sufficient to outweigh impact that adverse domestic credit conditions may be starting to have on economic data.”
“In the ‘ugly contest’ of G10FX, we still think the AUD looks unattractive versus the reserve currency status of the USD, which offers a higher yield. As such, we maintain our bearish view on the AUD.”
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