AUD/USD now under 0.7100 as broader risk asset sell-off deepens

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AUD/USD now under 0.7100 as broader risk asset sell-off deepens
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AUD/USD now under 0.7100 as broader risk asset sell-off deepens By Frank_Macro AUDUSD RBA RiskAppetite

tightening. A note from Goldman Sachs on Monday that got a lot of attention speculated the bank might hike interest rates at all of its remaining meetings in 2022.

Analysts at one of the banks said that this will result in the RBA revising higher their CPI forecasts, with the new forecasts to show trimmed mean inflation remaining at the midpoint of the inflation target for the duration of the forecast horizon. “Come the RBA's February meeting, QE is clearly gone,” analysts at the bank said, adding that as “for the rates view, much depends on its willingness to tolerate inflation at or above target as it waits until wages growth is closer to 3% plus”.

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