S&P on Australia:
- It is possible, but not certain, that the Australian economy can manage a "soft landing" with inflation decreasing to the RBA’s target range.
- The key risk is that inflation in Australia is more sticky than expected and the RBA has to hike interest rates more strongly.
- We expect continued expansion in 2023 and 2024 and unemployment to rise moderately.
- If the rise in Australian unemployment rate can be limited to around one percentage point, economic & financial fallout should remain manageable.
The AUDUSD has moved higher and above the 100 hour MA at 0.6553, and to a high of 0.6563, but has rotated back to the 100 hour MA. Can the buyers hold the MA line now?