AUD/USD to appreciate from here

Via a piece from NAB, this in brief:

  • The AUD/USD has depreciated slightly over the past month on renewed fears around the virus, with the emergence of the omicron variant.
  • We have revised down our forecasts slightly in the nearterm – around US1c lower through 2022.
  • Overall, we see the AUD/USD around 77c by end 2022, before appreciating to a peak of US78c by Q4 2023, and then paring back slightly over 2024.
  • Importantly, the exchange rate in both USD and trade-weighted terms remains below the level at the time of the QE announcement adding support to the decision to end the program as we expect in February

aud nab forecast 29 December 2021

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