Can the Aussie dollar recover from its recent lows?
The Aussie dollar hit the key level of US$0.7150 just four short weeks ago, but since then it’s collapsed to 0.674. James Swerling from Ebury says the Aussie has suffered as US economic indicators have continued to shoot ahead causing the US dollar index to strengthen.
Additionally, James says the Australian dollar has weakened in the past few weeks as wages growth missed forecasts and employment figures wilted. However, James points out that there’s a word of warning from the RBA for the to the A$ bears, the central bank’s minutes revealing they considered a 0.5% hike. He adds the we should consider Indian economic growth. He says India is expected to account for 15% of world growth in 2023 this could impact Australian dollar.
James also talks through the outlook for the Euro, which has strengthened as the Eurozone shows surprising economic resilience.
Watch full interview here