The Aussie should continue to draw support from a relatively hawkish central bank and, compared with various other major economies, a strong set of fundamentals which include both a balanced budget and positive current account position.

We see scope for AUD/USD to move to 0.7000 on a 12-month horizon. That said, we also see the potential for further dips back to 0.6500 in the one-to-three-month horizon on further bouts of USD strength.