Jane Foley, Senior Currency Strategist at Rabobank, believe that the pair AUD/USD it could fall towards 0.7200 by the end of the year.
“Over the next year, developments in the Australian labor market and, in particular, wage data will be instrumental in guiding expectations regarding RBA policy.”
“In this period of time, the market is likely to be on the lookout for possible additional changes in the Bank’s QE policy.
or in the guidance regarding the cash rate, which the RBA does not expect to adjust until 2024. “
“The impact of any change in AUD / USD will depend on the expected course of Federal Reserve policy. Assuming the RBA lags behind in policy, it is reasonable to assume that AUD / USD could continue to decline. Consequently , we have adjusted down our AUD / USD forecast. We now see room for the currency pair to approach 0.72 by the end of the year. “