Measured since the start of the war in Ukraine, the AUD is the best performing G10 currency. Economists at Rabobank expect the AUD/USD pair to hit the 0.75 level sooner than expected fueled by robust energy prices.

Higher prices for alternative energy sources to support the aussie

“Even in the best case scenario of a peace deal for Ukraine, it is likely that Europe will continue to strive for more energy independence from Russia. This suggests higher prices for alternative energy sources for some time, which is likely to maintain support for currencies such as the AUD.”

“There are questions about how much additional LNG Australia could supply to Europe without breaking existing contracts or running the risk of a gas shortage on its own east coast. Irrespective, Australia remains the world second-largest exporter of coal.” 

“We have brought forward our six-month 0.75 AUD/USD forecast to a three-month view and expect a move towards 0.76 in six-months.”