Since its low in October, AUD/USD has been recovering strongly. Economists at Société Générale expect the pair to enjoy further gains.
China’s growth spark is benefiting Australia
“The Chinese reopening remains the dominant macro theme in FX, while AUD/USD performance is strongly linked to Chinese equities.”
“China’s growth spark is also benefiting Australia. Both China and Australia’s trade surpluses have increased, and Australia started the year with the biggest monthly increase in consumer confidence for almost two years.”
“Australian growth should be one of the least impaired in G10 by the global tightening cycle, likely securing further AUD/USD gains.”
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