ANZ Research discusses AUD/USD outlook in light of updating its year-end target to 0.80.
"An up-tick in global volatility has finally seen the Australian dollar break the 2021 trading range. It will remain subject to a number of key global narratives like the sustainability of growth and the relative speed of central bank policy...We expect quantitative easing to evolve into a more open-ended framework. The stronger economic outlook, notwithstanding some near-term risks, suggests the RBA will not extend its yield curve target beyond April 2024,"ANZ notes.
"A slowing Asian credit impulse will add headwinds to AUD appreciation. Under these conditions, we think the path to AUD appreciation will be more modest, and have updated our year-end target to USD0.80," ANZ adds.