AUD/USD: Downgraded near-term path, but strong rally to 0.75 expected in 2023 – Westpac

Economists at Westpac have lowered their profile for the Australian dollar against the USD this year. But the AUD/USD pair is still expected to stage a strong rally to 0.75 in 2023

Sgnificant volatility over the remainder of 2022

“We now cannot see that lift to 0.73 over the course of the remainder of 2022. Our end-year target has been lowered to 0.69.” 

“Markets will remain risk averse until they can see the prospect of a clear downward trend in inflation and the peak in interest rates for central banks. That is unlikely to emerge over the course of the remainder of 2022.”

“We continue to expect the AUD to be strongly supported against the USD in 2023 with a 0.75 target.”