FXStreet reports that Rabobank’s forecast suggests scope for AUD/USD a move back towards 0.68 on a three-month view. 

“We are more constructive on the outlook for the USD than the market consensus. It is likely that we are also more concerned about the prospects for the Chinese recovery going into the end of the year. In view of the economic slack in the Australian economy, it is possible that policy makers will want to shake off the reputation of being the least dovish central bank in the G10 in the coming months. Layered on top of these arguments are concerns about the economic impact of the drawn out lockdown in Melbourne and from the testy relations between Canberra and Beijing. All these factors could conceivably weigh on AUD/USD in the coming months.”

“The combination of slower US growth in Q4 and continued US/China tensions is likely to impact China’s recovery. Insofar as Europe is already facing reports of a resurgence in COVID-19, it is likely that disappointment about the global economic outlook could become more broad based. All of these factors would undermine market confidence and have the potential to support the USD.”