AUD/USD to move sustainably above 0.7000 in the second half of the year – ING

AUD/USD staged a big rally in November/December. Economists at ING analyze Aussie’s outlook.

Pausing after the big rebound

Given the unstable risk sentiment, there is probably room for some correction or at least a pause before the uptrend resumes.

We expect the RBA to be less dovish than the Federal Reserve this year, cutting only from 4Q.

Policy differentials, undervaluation and lower global yields will, in our view, drive AUD/USD sustainably above 0.7000 in 2H24.

AUD/USD – 1M 0.6700 3M 0.6700 6M 0.6900 12M 0.7000