The relative resilience of the Australian economy suggests scope for the AUD to outperform both the NZD and the EUR over the coming months, economists at Rabobank report.
AUD/USD at risk of dips to 0.62 on a three-month view
While we expect broad based USD strength and weak risk appetite to push AUD/USD back to 0.62 on a three-month view, we see the relatively better economic outlook in Australia to result in the AUD outperforming both the NZD and the EUR.
We see scope for EUR/AUD to drop back to 1.59 on a six-month view and see potential for AUD/NZD to edge towards 1.12 in a six-month view.
We expect NZD/USD to dip to 0.57 on a three-to-six-month view.