ausbiz: Why the Aussie dollar is likely to remain under pressure

CalendarJune 15, 2023

In his latest interview with ausbiz, Peter Dragicevich, APAC Currency Strategist at Corpay Cross-Border Solutions, talks through why the Aussie dollar is under pressure and likely to remain so. Peter discussed:

  • Higher yields. Markets reprice BoE rate hike expectations after UK wage growth quickens. This supported GBP, and pushed AUD/GBP a bit lower.

  • US inflation. Headline CPI 'mechanically' falls, while core inflation is stickier. Tomorrows Fed meeting in focus. A 'hawkish skip' looks most likely.

  • AUD cross currents. AUD mixed overnight. The lift in USD/CNH remains a AUD headwind. A 'hawkish' Fed could see the AUD dip lower.

Watch the ausbiz video here: