AUD/USD to continue under pressure on growth concerns from China – Commerzbank

Pressure on the Reserve Bank of Australia (RBA) to end its expansionary monetary policy is mounting. However, things remain difficult for the aussie, economists at Commerzbank report.

RBA might give itself some more time

“As the market is already expecting that the RBA will hike its key rate next week the effect on AUD is likely to be limited. On the contrary: if the RBA comes to the conclusion that May is too early for lift-off after all AUD might come under downside pressure.”

“I assume that the RBA might give itself some more time and will not act quite that quickly. Otherwise, the move from ‘patient’ as far as rate hikes are concerned towards an ‘immediate hike’ would be a little abrupt after all.”

“The AUD is going to struggle at present anyway as increased concerns about the Chinese economy as a result of the lockdowns there are likely to dominate over monetary policy thus putting pressure on AUD for now.”