Bank of America Global Research introduces a new fair-value model for AUD.

"We introduce a new AUD/USD model and estimate 'fair value' to be around 0.7240, about 1% above the current spot rate of 0.7185 (as at 29 April 2026). Our new model is a useful tool which helps guide our AUD view particularly amid elevated volatility and headline-driven market moves," BofA notes.

"Overall, we remain constructive on AUD and see further upside by year-end (target: 0.74) amid upside risks (hawkish RBA vs Fed, possible US-China trade deal, potential increase to super fund hedge ratios)," BofA adds.