Economists at Westpac have lowered their forecast for the AUD/USD by year’s end from 0.69 to 0.65. However, they expect the pair to recover in the second half of the next year.

End-2023 forecast also lowered to 0.72 from 0.75

“We have significantly lowered our 2022 end year ‘target’ for the AUD/USD to 0.65. That means that over the remainder of 2022 there will be periods when the aussie will trade below the 0.65 level given the high volatility in currency markets to date.”

“We still expect the AUD to lift against the USD in 2023, with most of the recovery occurring in the second half of 2023 but have lowered our forecast for end-2023 for AUD/USD from 0.75 to 0.72.”