ausbiz: What next in global FX markets?

CalendarJuly 21, 2023

In his latest interview with ausbiz, Peter Dragicevich, APAC Currency Strategist at Corpay Cross-Border Solutions, paints a picture of the current economic landscape. He comments on the surprising resilience of the Australian labour market, suggesting that despite several factors that hint at declining employment rates, unemployment remains low. However, he expects an increase in unemployment rates over the next year as the lagged impacts of existing rate rises flow through the economy.

Nevertheless, current low unemployment rates, coupled with high inflation, will keep the pressure on the RBA to increase rates again in August. In the broader global context, Dragicevich anticipates that central banks, including the Fed, will maintain higher rates for longer, leading to potential market instability. Dragicevich also shares his insights on the currency market impacts of the changing macroeconomic environment and, in particular, why asymmetric risks exist for the Japanese Yen.

Watch the ausbiz video here: