AUD/USD clings to 0.74, however the pair will move lower in the coming months, according to economists from Rabobank. Furthermore, the Reserve Bank of Australia (RBA) is said to continue to maintain a dovish stance due to the persistence of the virus.
The population will have to live with the virus
“Current vaccination rates suggest that some degree of restrictions will remain until November. This leaves little room for doubt about the RBA’s commitment to its dovish position.”
“The experience of last year’s lifting of lockdown suggests that there is scope for the economy to recover sharply next year once the restrictions are lifted. That said, the RBA has been given flexibility to increase policy stimulus if it is necessary”.
“Although the AUD has recovered from its lows, we see risk of further weakness in the currency pair towards 0.70 in a one to three month view before an r is setrecovery in the AUD next year“.
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