A sliding greenback is forecast to push the Australian dollar higher
Although the value of the US dollar ticked up against the Australian dollar on Tuesday, the greenback’s has been trending down in 2025 as investors speculate about US interest rate cuts.
Senior FX strategist at NAB, Rodrigo Catril says the US dollar has been sliding ahead of expectations the Federal Reserve will lower rates in mid-September.
Mr Catril says if – as expected – the US Central Bank cuts rates twice this year and another two times next year, there’ll be a “powerful downward force on the dollar, and that in itself will be a a nice tailwind for the Aussie (dollar)”.
Meanwhile, he says the gold price could hit above $US4,000 an ounce within the next 12 months as countries including China look to diversify away from US assets.
Credit to : ABC News (Australia)