Ausbiz welcomed back our local currency expert Patrick Idquival.
After pushing US$0.7000 we’ve seen a sharp bounce in the Australia dollar this week. Patrick says the last few weeks have been a great example of how the AUD is a risk proxy. We saw some volatility in the dollar as the Omicron story has recently unfolded, however markets have begun digesting the narrative that it won’t ‘derail the economic recovery’, as the Reserve Bank of Australia’s Governor Lowe suggests. Looking to the bigger picture next year, Pat says he likes what he’s hearing in terms of policy and what it will mean for the AUD. Where most central banks are tightening policy, we’re seeing the opposite from China. So despite the Fed’s hawkish pivot, the AUD will find support from its Chinese peer.
Watch the full interview here