Audusd Forecast Ing

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Audusd Forecast Ing

AUD/USD To Touch 0.75 By End Of The Year

ING has forecasted that the AUD/USD pair will be near 0.75 by the end of 2026. This is a bullish forecast as the pair is trading way lower than the 0.75 handle for now.

Even now, the AUD/USD pair is at 4-years high, but ING thinks more upside is ahead. This comes at a time when the US Dollar is under pressure due to inflation, geopolitics, and trade tariffs.

AUD Is A High-Yielding Currency

ING added that the Australian Dollar is a high-yield currency and is closely linked to commodities. So in the next few quarters, AUD will continue to stay strong with little to no downside.

ING commented that the AUD/USD pair might go through a correction, but it will be short-lived. The year-end target is 0.75, which means AUD/USD is set to go even higher.

The AUD in particular is vulnerable in situations when the risk appetite deteriorates. On top of that, the Middle East fears are also a factor that can impact the currency. Despite all of this, ING thinks AUD/USD will move higher mainly due to a weaker US currency.

Meanwhile, the RBA has introduced a rate hike of 25 bps, which also supports the AUD. Looking ahead, analysts think the US Federal Reserve may cut the rates multiple times during the rest of the year.

So, even if we look at the AUD/USD pair based on monetary policy only, it becomes clear that the odds are in favor of the Australian Dollar.

Meanwhile, Governor Bullock added that the higher oil prices will drive inflation and impact growth. She added that it is important for the bank to keep a restrictive policy.

The market now expects the RBA to go ahead with 2 more rate hikes during the rest of the year. So, the appeal of holding the AUD against the USD will only increase in the coming months.

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