📝See AUD/USD Rising to 75c By Year-End: ANZ

The US dollar has largely been overvalued based on our models

and we expect it to mean revert over a period of time. See the AUD/USD moving towards 70c in June and rising to 75c by year-end on the back of USD weakness.

Further, any decline in yields and expectations of rate cuts

will also reflect in USD moves. If there are any spillovers to

global banks, then we may see some haven buying in the USD

instead.

For the AUD, market expectations of terminal rates and real

yield differentials will play a larger role for the currency

going forward, especially on the crosses. - ANZ