AUD/USD set to march forward as Australian economy recovers from lockdowns – CIBC

Over the last month, AUD has gained against the funding currencies of JPY and EUR, and is also firmer against the USD, although it has lost ground to the NZD. Looking ahead, economists at CIBC Capital Markets expect AUD to rise against the greenback but underperform against the NZD.

Mixing AUD performance 

“In the coming month, we expect flat to positive AUD performance against the USD as the economy recovers from lockdowns, and for underperformance against the NZD to extend.”

“For AUD overall, that the RBA will be one of the later major central banks to tighten, need not be a dramatic weight on the currency, so long as the economy is recovering with low-inflation activity.”

“Previous concerns over tensions between China and Australia have not gone away, but trade numbers out of both economies show that Chinese demand for industrial commodities continues and that Australia remains its major source.”