Rabobank is not expecting an RBA policy adjustment until late in the year. This should lend support to AUD/USD and we see scope for the currency pair to climb back to 0.70 on a 12-month view.

That said, on the expectation that the market has priced in too many Fed rate cuts too soon, we see scope for the USD to pull back some ground on a 1-to-3-month view and see scope for AUD/USD to dip back to 0.65 on a 3-month view. This has been revised up from a previous forecast of 0.64.