# Australian Dollar Predicted to Weaken as Carry Trade Considerations Come to the Fore: HSBC

> HSBC FX analyst David Bloom expects the Australian dollar to weaken as Federal Reserve hikes narrow the carry trade advantage over the Aussie. A lower-than-expected Australian inflation print has raised the chance of the RBA cutting from 1.5 to 1.25 percent.

- Date: 2017-01-27 · published 2017-01-27T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/73245-australian-dollar-predicted-to-weaken-as-carry-trade-considerations-come-to-the
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker Aussie reduces the cost of Australian grain and meal exports in dollar terms, adding mild pressure on global feed prices, though the effect is modest.

## Read by commodity

- DXY: bullish ▲
- AUDUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-04-26 | ['That's history': Australian dollar has had a week to forget](https://feedsoft.ai/events/65755-that-s-history-australian-dollar-has-had-a-week-to-forget.md) | +0.7% | +2.1% |
| DXY | 2022-08-31 | [Forex: China, recession worries hammer the Australian dollar](https://feedsoft.ai/events/40293-forex-china-recession-worries-hammer-the-australian-dollar.md) | +0.9% | +3.6% |
| DXY | 2022-11-18 | [Australian Dollar Filleted by Fedspeak as US Dollar Resumes Ascendency \| Forex trading, free forex education \| Forex.ca](https://feedsoft.ai/events/38927-australian-dollar-filleted-by-fedspeak-as-us-dollar-resumes-ascendency-forex.md) | -0.5% | -1.1% |
| DXY | 2025-01-03 | [Interest rates, exporters and Reserve Bank intervention: There's a lot at stake as the Australian dollar weakens - ABC News](https://feedsoft.ai/events/26751-interest-rates-exporters-and-reserve-bank-intervention-there-s-a-lot-at-stake.md) | -0.1% | -0.8% |
| DXY | 2022-12-27 | [USD to AUD Forecast: Why The US Dollar Is Strengthening Against The Australian Dollar](https://feedsoft.ai/events/38485-usd-to-aud-forecast-why-the-us-dollar-is-strengthening-against-the-australian.md) | +0.1% | -2.5% |

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/aud/6118-the-australian-dollar-is-likely-to-weaken-as-carry-considerations-predominant-says-hsbc

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.