AUD/USD: Scope for a retracement to 0.70 in H1 2022 – UOB

In opinion of FX Strategists at the Quarterly Global Outlook from UOB Group’s Global Economics & Markets Research, AUD/USD could recede to the 0.7000 neighbourhood in the first half of 2022.

Key Quotes

“AUD/USD had  a tumultuous quarter,  weighed  by a surge in coronavirus cases in  Australia, a 44% slump in iron ore prices and standout dovishness  of  the RBA relative  to its G-10 peers.”

“As such, we keep to our cautious view on  AUD/USD and update our forecasts at 0.71 in 4Q21, 0.70 in both 1Q22 and 2Q22, and 0.69 in 3Q22.”