Scope for AUD/USD to edge towards 0.72 by year-end – Rabobank

Eren Sengezer FXStreet

Jane Foley, Senior FX Strategist at Rabobank, thinks that the AUD/USD pair could drop toward 0.7200 by the end of the year.

Key quotes

"Over the coming year or so, developments in the Australian labour market and in particular wage data will be instrumental in guiding expectations regarding RBA policy."

"In this time-frame, it is likely that the market will be watching for any further changes potentially on the Bank’s QE policy
or on the guidance with respect to the Cash rate, which the RBA does not expect to adjust until 2024."

"The impact of any changes on AUD/USD will depend on the expected path of policy from the Federal Reserve. Assuming the RBA is seen as a laggard on policy, it is reasonable to assume that AUD/USD could track lower. Consequently, we have adjusted down our AUD/USD forecasts. We now see scope for the currency pair to edge towards 0.72 by year-end."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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