Fundamental Forecast for the Australian Dollar: Neutral
- RBA likely to maintain status quo, Chinese PMI data may pass quietly
- Impact of US news on risk trends biggest Aussie Dollar volatility risk
- To see the 2016 outlook for AUD/USD, check out our Trading Guides
The Australian Dollar continued to recover for second week, bolstered by better-than-expected inflation data and firming market-wide risk appetite. The former weighed against RBA interest rate cut expectations while the latter fueled demand for higher-yielding assets, offering support to the sentiment-linked currency. Looking ahead however, upside follow-through may be compromised as a relentless stream of high-profile event risk promises to unleash sharp volatility.