AUDUSD 1-Hour Market Analysis

Goldman Sachs expects global GDP growth to rise from 2.7% in 2026 to 2.8% in 2027, with energy price shocks shifting from a headwind to a tailwind, and AI investment remaining the main growth driver. The three major downside risks stem from energy impacts related to the Iran situation, the bond market, and the AI cycle. Annual inflation is expected to decline, though upside risks persist. The Federal Reserve is projected to raise rates once each in December and March 2027, while the European Central Bank is expected to begin rate cuts in December 2027 and Q4, respectively. Both equities and bonds are expected to generate positive returns in 2027, though volatility risks are increasing, and returns on commodities are expected to be close to zero.

In its latest regulatory filing submitted prior to its initial public offering, Nscale disclosed that the company's debt level has risen significantly, and it will need to raise substantial funds in the future to fulfill customer contracts. Additionally, Nscale's dependence on Nvidia is higher than previously disclosed.

U.S. Treasury Secretary Besent believes the current inflation primarily stems from energy supply shocks triggered by the Iran war, and considers the current inflation data to be essentially "noise," stating that the Federal Reserve should not raise interest rates because of it. However, Chicago Federal Reserve President Goolsbee argues that inflation has now spread to sectors including services and healthcare, and warns that the risk of overheated demand cannot be ignored, indicating that the Federal Reserve still needs to take action.