AUD Pausing Not Pivoting

UBS maintains a constructive outlook on the Australian dollar despite the RBA's first policy pause of the year. The firm expects a target in the mid-0.70s for AUDUSD over the next 12 months.

Key Takeaways

• 1.The RBA paused interest rate hikes at 4.35% but maintained a hawkish bias.
• 2.UBS remains constructive on AUDUSD, targeting the mid-0.70s over 12 months.
• 3.Upside risks to inflation and tight labor markets support the forecast for a 25bps hike in August.

Table of Contents

• AUD: Pausing, not pivoting
• Investment implications
• Global Asset Class Preference Attractive
• Global asset class preferences definitions
• Appendix

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