AUD/USD: Downside move is not yet over but turnaround should come from Q1 onwards – MUFG

During October the Australian dollar depreciated further against the US dollar from 0.6443 to 0.6395. Economists at MUFG expect further downside pressure on the aussie but note that the AUD/USD could start to recover in the first quarter of 2023.

Near-term outlook for AUD remains negative

“Recession is now a given in Europe and with weak growth in China unlikely to change dramatically, the near-term outlook for AUD remains negative.”

“Assuming we have a global policy pause in Q1, AUD/USD can then begin to recover.”