AUD/USD: SCOPE FOR A MOVE TO 0.7000 ON A 12-MONTH HORIZON – RABOBANK

AUD/USD is testing the water above the 0.6600 level for the first time since early February. Economists at Rabobank analyze the pair’s outlook.

Potential for further dips back to 0.6500 in the one-to-three-month horizon

The Aussie should continue to draw support from a relatively hawkish central bank and, compared with various other major economies, a strong set of fundamentals which include both a balanced budget and positive current account position.

We see scope for AUD/USD to move to 0.7000 on a 12-month horizon. That said, we also see the potential for further dips back to 0.6500 in the one-to-three-month horizon on further bouts of USD strength.