AUD/USD to advance nicely towards 0.74 by year-end – BofA

Economists at the Bank of America Global Research expect the Australian Dollar to strengthen later in the year and target AUD/USD at 0.74 by end-2023.

AUD/USD seen at .069 by end-1Q

“We are bullish AUD/USD in the medium term due to the lagged impact of China property easing and reopening, alongside the Fed ending its tightening cycle in 2023.” 

“We forecast 0.74 by year-end but more neutral near term (0.69 end-1Q) especially given the ongoing repricing of US rates and US Dollar strength.”