HSBC: Australian and Canadian currencies will be vulnerable for now, but will recover in 2023

According to economists at the British bank HSBC, Australian and Canadian dollars will be quite vulnerable in the near term. However, both currencies should gradually, albeit unevenly, recover next year.

With the U.S. Federal Reserve's (Fed) ongoing “hawkish” position and fears of global growth, investors are likely to avoid risk in the upcoming weeks. Regarding this, the national currencies of Australia and Canada might weaken against the U.S. dollar.

In general, economists agreed that the next year’s recovery of both currencies will probably be quite bumpy and unsteady due to the ending of the Fed’s rate-hike cycle.