AUD/USD: Prospects are good for seeing an eventual break above 0.7000 – MUFG

FXStreet Insights Team FXStreet

The Australian Dollar (AUD) weakened modestly in February against the US Dollar (USD) from 0.6596 to 0.6503. Economists at MUFG Bank analyze Aussie’s outlook.

Gradual appreciation beyond short-term risks

The increased prospects of a soft landing for the global economy help provide support for AUD while domestic conditions could hold up better than expected.

China and global conditions will remain important for the RBA but with major central banks starting to cut in the summer, it may be September before the RBA cuts.

If the global economy manages a softish landing, then AUD/USD prospects are good for seeing an eventual break above the 0.7000 level.

AUD/USD – Q1 2024 0.6600 Q2 2024 0.6700 Q3 2024 0.6800 Q4 2024 0.7100

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