AUD/USD could have room for a tactical uptick – Danske Bank

AUD/USD has declined notably over the past month. Economists at Danske Bank analyze the pair’s outlook.

The rate hiking cycle is most likely over

The Reserve Bank of Australia (RBA) remained on hold in October, and we think the rate hiking cycle is most likely over.

If inflation remains under control and global central banks start to signal a more cautious outlook, we see room for a tactical uptick in AUD/USD, but maintain a modestly downward-sloping forecast profile in 12M horizon.

Forecast: 0.64 (1M), 0.64 (3M), 0.63 (6M), 0.62 (12M)