AUSTRALIAN DOLLAR FORECAST: BULLISH
- The Australian Dollar is caught up in the US Dollar vacuum
- RBA rate hikes are coming thick and fast, strap in
- When it comes to the economy, it doesn’t get much better than this
The Australian Dollar got tonked going into the end of the week despite the RBA delivering an outsized rate hike of 50 basis points on Tuesday.
Global machinations continue to plague the Aussie with the macro environment playing from the traditional song sheet. Supply shocks have pumped the oil price and other commodities higher, lifting inflation expectations, raising the Fed rate hike path, elevating Treasury yields and boosting the US Dollar – sending AUD/USD lower.
This is a massive boon for the Australian economy. Circa AUD 10 billion is walking in the door every month from international trade and the longer the currency remains undervalued, the higher the domestic standard of living is enjoyed.
In times of crisis…