HSBC Forecasts Chinese Travelers Returning to Australia in 2023 as the Biggest Story for the Australian Dollar

Must Read

According to HSBC experts, the Australian Dollar is set to receive a much-needed boost soon. The bank’s analysis suggests that the return of Chinese visitors in 2023 is likely a significant driver of currency strength for the Aussie.

Global Head of FX Research at HSBC, Paul Mackel, said: “A reopened China could provide substantial opportunities for a strong recovery of Australia’s exports of services.”

The Australian Dollar is set to receive a much-needed boost soon, according to the latest analysis from HSBC experts. The bank’s FX research team joins most of its peers in thinking China’s recent steps to exit its zero-Covid policy will boost global growth and China-facing proxies over the coming months. This is mainly due to the return of Chinese visitors in 2023, which HSBC believes could be a significant driver of currency strength for the Aussie.

“China’s faster-than-expected reopening, wide-ranged policy support for the property sector, and ambitious infrastructure investments have led investors to consider increasing their exposure to the AUD, given the deep and multidimensional linkage between the two economies,” says Mackel.

The reopening of China has indeed provided Australia with the potential for improved commodity exports, particularly now that China has lifted a ban on imports of Australian coal. This move is expected to be welcomed by the country’s coal industry, which had experienced a significant decline in production due to the import ban.

“China is the largest recipient of Australia’s exports of services, mainly tourism, education, and business services,” says Mackel.

Although easing China’s import restrictions has been good news for some sectors within Australia, the larger economic picture could be even brighter. With higher visitor numbers expected over time and more opportunities opening up across various industries – HSBC analysts believe 2023 could be a significant boon for the Australian Dollar’s performance against other global currency markets.

- Advertisement -spot_img
- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img