AUD/USD: Correction set to extend toward 0.6200/0.6250 – ING

Market news

3 October 2023

AUD/USD: Correction set to extend toward 0.6200/0.6250 – ING

The RBA's new Governor Michele Bullock sent a message of continuity and added pressure on AUD. Economists at ING analyze Aussie’s outlook.

New RBA governor fails to surprise

The RBA kept rates on hold as Michele Bullock made her debut as Governor. Markets are pricing in around 10 bps of tightening by December. We are more hawkish than the general consensus, seeing non-negligible chances that a CPI surprise will force one last hike to the peak.

Ultimately, even another hike would not be a game changer for the Aussie.

The sharp rise in US yields and soft risk environment should keep AUD/USD under pressure for now.

Risks are now that the correction extends to 0.6200/0.6250.

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