DowJones News
15 Sep, 2021 06:29

DJ AUD to Have Tailwinds in 2022, Barclays Says -- Market Talk

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0629 GMT - Barclays is forecasting a revival of AUD/USD in 2022 saying the currency will shake off 2021's weakness and climb to around 0.7800 (0.7400 now) in 2022. Tailwinds from China stimulus should more than offset drag from the Fed's taper and a short-term extension of the RBA's bond buying program into early next year, it adds. A big current account surplus and a strong recovery in domestic GDP growth next year will also drive AUD higher, Barclays says. Downside risks for the AUD are from less supportive fiscal policy, both in Australia and China, coupled with risks from a stronger USD if Fed tightening prospects being brought forward. (james.glynn@wsj.com; @JamesGlynnWSJ)

 

(END) Dow Jones Newswires

September 15, 2021 02:29 ET (06:29 GMT)


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