Westpac's Cheung Sees Limited Upside for U.S. Dollar

The video discusses the implications of the Federal Reserve's interest rate hikes on the market, highlighting the potential for continued dollar support despite limited upside. It examines the US GDP report's significance and the Fed's confidence in economic growth, noting the labor market's role in sustaining the economy. The discussion also covers the Dollar-Renminbi exchange rate, suggesting that Chinese authorities are comfortable with some currency weakness, provided it is market-driven, and may intervene if necessary to prevent rapid movements.

What is the expected impact of the Federal Reserve's interest rate hikes on the dollar?

• It will support the dollar.

• It will weaken the dollar.

• It will cause the dollar to fluctuate unpredictably.

• It will have no effect on the dollar.

How does the Federal Reserve view the potential impact of trade tensions on GDP growth?

• They are very concerned about it.

• They have put significant emphasis on it.

• They have placed little emphasis on it.

• They believe it will boost GDP growth.

What is the anticipated economic trend for the US in the middle of next year?

• A potential economic slowdown.

• A new cycle of economic growth.

• An increase in trade tensions.

• A period of economic stability.

How do Chinese authorities view the Renminbi's weakness?

• They are comfortable as long as it is market-driven.

• They are uncomfortable with any weakness.

• They plan to strengthen the Renminbi immediately.

• They are indifferent to the Renminbi's value.

What might trigger the PBOC to intervene in the currency market?

• A stable currency trend.

• A rapid move in the currency.

• A decrease in foreign investments.

• An increase in trade surplus.