AUD/USD could bounce back higher towards 0.76 in H2 2022 – Westpac

AUD/USD renews intraday low below 0.7250. Economists at Westpac still see some further weakness developing in the near-term but would use Q2 weakness as an opportunity to buy for strength later in the year.

Near-term gyrations could extend below 0.72

“Clearly, the extraordinary surge in energy and metals prices strengthens Australia’s already large trade surpluses. Lingering spec short positions also help insulate A$ from the dire headlines from Ukraine.” 

“Still, the contrast between a wary RBA and an expected 3 Fed rate hikes by June should bolster USD and help cap AUD/USD multi-month.” 

“Near-term gyrations could extend below 0.72 and our end-June forecast is 0.73, though rising once more in H2 2022 to 0.76.”