AUSTRALIAN DOLLAR FORECAST: BEARISH
- The Australian Dollar may have to deal with a relatively dovish RBA
- Interest rate differentials and commodities are working against the Aussie
- If the Fed kicks in a jumbo hike this week, will AUD/USD go lower?
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Trading Forex News: The Strategy
The Australian Dollar appears captive to US Dollar gyrations for now. US Dollar movements look to be driven by Treasury yields. Treasury yields seem to be driven by the actions of the US Federal Reserve.
So, to understand where the Aussie Dollar might be headed, it could be worthwhile to have a grasp of what the Fed is up to.
While the RBA is copping flak for increasing interest rates 225 basis points (bp) from the pandemic low, their US counterpart has lifted their cash rate by the same amount. The key difference is rhetoric about rates going forward.
On Friday, RBA Governor Philip Lowe reiterated his…
