AUD/USD could be testing the 0.70 area on a 12-month view – Rabobank

FXStreet Insights Team FXStreet

Economists at Rabobank see scope for AUD/USD to trend higher medium-term.

Interest rate differentials look set to offer the AUD support through much of next year

Interest rate differentials look set to offer the AUD support through much of next year. That said, the AUD is sensitive to broad levels of risk appetite and to the outlook for Chinese growth. While Fed rate cuts would underpin risk appetite in 2024, a rally in the AUD/USD could be curtailed if growth in China continues to disappoint.

On balance, we are optimistic that AUD/USD could be testing the 0.70 area on a 12-month view. This would be in line with the average level of the exchange rate over the past 5 years.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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