AUD/USD to trade higher in the long run – OCBC

Economists at OCBC Bank expect the AUD/USD pair to recover after a short term period of weakness.

Downside risks for now

Near term, AUD risks trading on the soft side. 

But looking out, we still favour AUD to trade higher on the back of expectations that China growth could stabilise at some point, possibly warmer ties between Australia and China, and a more moderate soft USD profile (as the Fed nears the end of tightening cycle).

See: Aussie is likely to continue to trade volatile – Commerzbank