HSBC: Recent factors are difficult to help the Australian dollar, and the decline may be extended

Sina Financial News HSBC currency strategist Lenny Jin said that the Australian dollar could extend losses as risks tend to the market to withdraw the Fed's interest rate cut bets, and the slow recovery in some Asian countries is unlikely to help the Australian dollar in the short term. According to Jin, they believe that the recent sell-off is not an underestimation of fundamentals, but rather a correction of the significant overvaluation of AUD FX accumulated in November and December 2023. The AUD/USD fair value is expected to be in the range of 0.6290-0.6667, implying a further decline of 1.1-1.2% to the midpoint of the range.