AUD/USD set to target 0.72 by year-end – ING

Economists at ING discuss RBA policy outlook and share their AUD/USD forecast.

The unpredictable RBA may be done with hikes

We expect inflation to start declining at a faster pace, which should make the real policy rate less negative and ultimately mark the of end of the hiking cycle. Still, risks are firmly on the upside.

Any data surprise will likely re-ignite hawkish bets and support AUD, which is already benefiting from news of stimulus in China and a recovery in Iron Ore prices. 

We target 0.72 by year-end.