AUD/USD to hover around 0.74 underpinned by commodity exports – Rabobank
|Although the aussie is unlikely to profit from any further hawkish comments from the Reserve Bank of Australia (RBA), the links with commodity exports are set to benefit the Australian dollar, drifting the AUD/SDU pair towards 0.74 over coming months, economists at Rabobank report.
NZD potentially gaining an advantage over AUD from the relative caution of the RBA
“The market is already positioned for rates hikes from both the RBNZ and the RBA this year suggesting it may be hard for either currency to rally much further on hawkish commentary from their respective central bankers.”
“Given the links of both currencies to commodity exports, we see the potential for both to edge a little higher vs the USD though the course of this year.”
“Our three-month target for AUD/USD is 0.74 and for AUD/NZD 1.06, with the NZD potentially gaining an advantage over the AUD from the relative caution of the RBA.”
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