AUD/USD to march forward to the 0.75 level by year-end – ANZ

The Australian dollar’s price action in recent weeks has highlighted the precarious state of global growth and regional asset markets. Nevertheless, economists at ANZ maintain their year-end AUD/USD of 0.75. 

Rates markets to provide a modest boost to the aussie

“We think the RBA will be cautious, even as the economy rebounds. Labour market slack and undershooting wage growth will hold the RBA back relative to peers. On balance however, with the worst behind us, we look for rates markets to provide a modest boost to the aussie.”  

“China's domestic policy will continue to affect the AUD, as property deleveraging and sectoral adjustments weigh on industrial commodity prices.”

“Stabilising growth and strong seasonal effects are likely to be marginally offset by tighter liquidity, leading to a range-bound currency and slightly higher volatility. We maintain our AUD/USD year-end forecast of 0.75.”