We expect AUD/USD to appreciate in the coming quarters due to continued RBA hawkishness, and medium-term USD weakness alongside an anticipated pick-up in Chinese demand over time.

In the near-term, there are slight headwinds from the USD side, which should cap short-term AUD/USD strength, but we still expect slow appreciation over the forecast horizon due to the above factors. 

AUD/USD – Q3 2023: 0.68 | Q4 2023: 0.69