AUD/USD: Forecast for Q4 and beyond revised lower – CIBC

AUD faced a difficult August. Economists at CIBC Capital Markets analyze Aussie’s outlook.

August sell-off to partially reverse over the medium-term

We have revised our AUD/USD forecast for Q4 and beyond lower, given the backdrop of weak Chinese growth and risks to global growth.

While the continuation of negative Chinese sentiment and potential downside in risk will be a major headwind for the AUD, a potential hawkish repricing of the RBA should limit AUD downside.

CPI and employment reports will be vital for our call of one more RBA hike

AUD/USD – Q4 2023: 0.63 | Q1 2024: 0.63