ANZ Research discusses its expectations for tomorrow's RBA policy meeting and AUD/USD year-end target.
"We don’t expect any policy changes at the RBA’s next meeting. Victoria’s current seven-day lockdown represents an ongoing downside risk associated with COVID-19. The focus however is on the July meeting for decisions on YCC and quantitative easing," ANZ notes.
"Thus far, the AUD has managed bouts of periodic volatility well, supporting our conviction that the dips are likely to remain shallow while trends in growth and volatility will remain supportive of the currency. Under these conditions, we continue to expect the AUD to be an outperformer amongst G10, with a path that rises towards our year-end target of USD0.82," ANZ adds.