It’s not just the USD that is giving the Australian dollar a shellacking, as I reviewed its 2023 likely trajectory in yesterday’s post, but also the crosses.
First off, with the ECB recently hiking rates again, the Euro is strengthening further against the Pacific Peso:
After a swift rally in September, the Euro has been rangebound against the Aussie since the ECB’s meeting and rate hike last week, sending the cross almost back to the start of year high.
If you’re planning a European holiday but are rethinking to visit Old Blighty instead, the hits keep coming:
The Pound Sterling is still doing quite well after a minor dip in November and looks set to finish the year closer to where it started it after falling down to the 1.60 level ever so recently. Central banks are playing catchup as the RBA lags tends to do that.
An Asian holiday perhaps instead?
The Yen is about to break higher against the Aussie after matching the October low for the AUDJPY pair recently. This sets up a multi-month breakdown that is likely to see a fuller retracement to the 2021 highs at the 85 level or even lower.
Perhaps it’s best to stay home these holidays!