The Australian dollar (AUD) has given back around half of the rebound made in the wake of the March 2020 pandemic low. Analysts at Scotiabank expect the AUD/USD to tumble towards 0.65 in the fourth quarter.

RBA key rate to reach 2.50% by year-end

“We see the Reserve Bank of Australia (RBA) key rate reaching 2.50% by year-end (from 1.85% currently) whereas swaps are pricing in the policy rate near 3.25%.” 

“We see some downside risk in the AUD outlook over the balance of the year and forecast 0.65 for Q4.”