AUD/USD: Outlook remains modestly negative – Danske Bank

Analysts at Danske Bank forecast the AUD/USD pair at 0.68 in a month, at 0.68 in three months and at 0.67 in a six months period. 

Key quotes: 

“The Reserve Bank of Australia (RBA) paused its hiking cycle in March following the banking sector uncertainty. After the strong March employment data, markets now price in around 70% probability of one more hike over the summer, which we consider fair.”

“With the global growth backdrop remaining weak and central banks broadly still on a tightening bias, the outlook for AUD/USD remains modestly negative. If April macro data shows, that the negative impact from the banking sector worries has been limited, then recovering risk sentiment could give the cross a short-term lift. But over the 6-12M horizon, we stick to a downward-sloping forecast profile.”