AUD/USD targets 0.8100 by year-end – TD

The Aussie Dollar is expected to edge higher towards the 0.8100 handle by end of 2017, according to Strategists at TD Securities.

Key Quotes

“The RBA has been cautiously optimistic about the global backdrop for some time, and is now acknowledging the stronger labour market. The RBA Governor is of the view that the next move is up for the cash rate, not only as growth gains traction, but as part of global policy normalisation. We expect Q3 core inflation to reach 2%, another hurdle for higher rates. We still look for two hikes in May and Nov 2018”.

“We have lifted our AUD profile to reflect ongoing USD weakness as well as the RBA inching closer to an explicit tightening bias. Our year end target is now $US0.81”.