AUD/USD to reach 0.7800-0.8000 by Q4 2022 – CBA

Analysts at Commonwealth Bank of Australia (CBA) offer an optimistic outlook for AUD/USD, expecting the major to rise all through 2022.

Key quotes

“The Aussie dollar is expected to rise over 2022 to reach US78-80 cents by the December quarter on the expectation that the Reserve Bank starts to ‘normalize’ interest rates.”

“A key uncertainty could be the outcome of the Federal election due in May. While the opposition Labor Party is currently well ahead in most opinion polls, a tight result or even a ‘hung’ parliament could potentially impact investor sentiment. But a center-left government, as evidenced in the US, could see a big boost to government spending.”

• AUD/USD Price Analysis: Indecisive below 50-DMA within a rising channel