Bullish
UBS projects AUD/USD to reach 0.70 by early 2026 amid favorable conditions.
UBS analysts anticipate the Australian dollar will appreciate against the US dollar, forecasting AUD/USD to hit 0.70 by early 2026. This outlook is supported by expectations of a less aggressive easing path from the Reserve Bank of Australia compared to the Federal Reserve, as well as Australia's deep and liquid bond market, which may attract investors seeking to diversify currency exposure.
Key points
- UBS identifies AUD/USD as an attractive long opportunity at current levels.
- Forecasts a target of 0.70 by early 2026.
- Expects 75 basis points of rate cuts from the RBA through Q1 2026.
- Highlights Australia's deep and liquid bond market as a draw for investors.
Sources
AI-generated from public news sources. Not financial advice.
