AUD/USD set to move towards 0.74 on a 12-month view after – Rabobank

In Australia, growth is likely to hold up better than in several other major economies into 2023. Therefore, economists at Rabobank maintain their forecast of a move to AUD/USD 0.74 on a 12-minth view

Relatively better?

“Australia is facing slowing economic growth into next year. However, even with aggressive interest rate hikes from the RBA this year, the 2023 outlook appears more buoyant than in many other major economies including the US, Eurozone and the UK. This bodes well for the medium-term AUD outlook vs. a basket of other G10 currencies.”

“Although we see risk that another bout of safe haven USD buying could push AUD/USD lower on a one to three-month view, we favour buying the currency pair on dips and expect a move to 0.74 on a 12-month view.”