AUD: capitalising on the situation. Overview for 28.06.2022

28.06.2022

AUDUSD ignores bad forecasts for the Australian GDP.

The Aussie is slowly growing against the USD on Tuesday. The current quote for the instrument is 0.6957.

The local weakness of the American currency allows the Aussie to recover a bit. At the same time, investors are paying no attention to negative news.

According to S&P Global, the Australian GDP in 2022 might be worse than it was preliminary expected – the indicator might add just 3.6% against 4.0%. On the other hand, in 2023, the GDP might gain 2.8% against 2.7%.

Inflation in Australia might reach 5.0% this year. In 2023 and 2024, the indicator might drop to 3% and 2.5% respectively.

As for the benchmark interest rate, S&P Global believes that it might be raised to 1.75% this year, and up to 2.3% and 2.75% in 2023 and 2024 respectively. Only in 2025, the rate might start going down.

One must admit that expectations announced by S&P Global are looking extremely realistic as they are based on the weakening of export demand due to a slowdown in all global economies. In the long term, it’s not a good signal for the AUD.

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.