On Friday, AUD/USD dove back below the 0.700 level. Economists at Rabobank continue to see scope for AUD/USD to strengthen to 0.72 towards the back half of this year.

AUD/USD to trade mostly in the 0.69-0.70 area on a three-month view

“An as expected 25 bps rate hike from the RBA this week, should not in itself create much of a reaction from the AUD. However, any rhetoric which pushes back against the risk of a forthcoming policy pause should lend support.”

We expect AUD/USD to trade mostly in the 0.69-0.70 area on a three-month view as the market assesses the policy outlook of both the Fed and the RBA.”

“We look for a move to AUD/USD 0.72 in the latter half of the year assuming China’s economic recovery remains on track.”

See – RBA Preview: Forecasts from 10 major banks, looking for any clues that the Bank is considering pausing