AUD/USD set for a race higher through the rest of 2023, but risk aversion periods will slow the advance – MUFG

The Australian Dollar weakened modestly further in March. Economists at MUFG Bank see upside scope but tempered by bouts of risk aversion.

RBA unlikely to cut rates this year

“With China re-opening likely to provide support for growth this year, we do not expect the RBA to cut rates this year.”

“AUD/USD should be set for a move higher through the rest of the year although periods to risk aversion will see AUD suffer more, which will slow the move higher.”

“AUD/USD: Q2 2023 0.6800 Q3 2023 0.7000 Q4 2023 0.7200 Q1 2024 0.7100.”