AUD/USD to hover around the 0.66-0.68 range in the near-term, reaching 0.70 by year-end – ANZ

Economists at ANZ Bank analyze AUD/USD and AUD/NZD outlook.

Decline in the USD toward the end of the year
We expect the USD to decrease as the market begins to factor in potential rate cuts by the Federal Reserve.

We expect some upside for the AUD owing to the predicted drop in USD. We believe that AUD/USD is likely to remain in the 0.66-0.68 range in the near term and forecast the pair to reach 0.70 by year-end.

AUD/NZD will trade within the 1.08-1.10 range in the near term. Any dip below 1.08 could present a buying opportunity due to the widening growth differentials between Australia and New Zealand.