SPECIAL REPORT | Ebury's 2023 Trends Report looks at what happened in 2022 and what should businesses expect in 2023. Download the report.

The Aussie dollar is experiencing some ‘short-term joy’

  • Go back to blog home
  • Blog
    Blog|Currency Updates
    Blog|In The News
    Blog|International Trade
    Charities & NGOs
    Currency Updates
    Currency Updates|In The News
    In The News
    In The News|Press
    International Trade
  • Latest

12 December 2022

Written by

The Aussie dollar is experiencing some ‘short-term joy’

The Fed slowing the pace of rate hikes doesn’t mean the terminal rate will be lower

Senior Corporate Dealer James Swerling joined Ausbiz to explain that it is in fact quite the opposite. We are seeing the 1-year forward points spread on AUDUSD continue to widen, from 83 points this time last week to a new high of +93 today. The USD index continues to see strong support at the 200 day moving average, which has drifted up to 105.39 or 0.50 below current levels. Australian inflation seems to have peaked, though we’re still 6 months behind the US. Other economic data yesterday showed slowing, particularly in real estate and associated sectors such as home / personal loans. Commodity markets have responded well to easing of COVID restrictions in Chongqing and Guanzhou along with the related protests. Eurozone inflation is down from last month’s high – but only slightly, and mainly due to lower energy prices. Other economic markers are not really rolling over yet, with economic sentiment and PMIs holding up well, and an implied return to 0.5% hikes after two lots of 0.75% hikes. The NZD is the strongest currency of the last 2 weeks following their interest rate hike to the highest in the G10 and commitment to keep going in order to control inflation.

Watch full video here