On Friday, the AUD/USD returned below the 0.700 level. Rabobank economists continue to see room for AUD/USD to strengthen to 0.72 towards the second half of this year.
AUD/USD will mainly trade in the 0.69-0.70 area three months ahead.
“A 25 basis point rate hike by the RBA this week, as expected, should not itself trigger much of a AUD reaction. However, any rhetoric that pushes back the risk of an upcoming pause in monetary policy should serve as support“.
“We hope that the AUD/USD trades mainly in the 0.69-0.70 zone three months aheadas the market assesses the monetary policy outlook of both the Fed and the RBA.”
“We expect a move towards 0.72 in the AUD/USD in the second half of the year, assuming China’s economic recovery remains on track“.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
