In the view of economists at HSBC, both the Australian Dollar and the Loonie are likely to face risk sentiment challenges over the near term, before a bumpy recovery in 2023.

Near-term challenges

“If the coming weeks bring a fresh bout of risk aversion (amid a still hawkish Fed, global growth concerns, and reasons for caution elsewhere), then both the CAD and AUD are likely to weaken against the USD. 

“Our medium-term view is that both commodity currencies will probably be on a bumpy recovery path in 2023, as the Fed’s hiking cycle comes to an end.”

This article was originally published by Fxstreet.com.Read the original article here.

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