AUD/USD to edge lower towards 0.72 amid dovishness of the RBA – Rabobank

AUD/USD has been trending lower since the start of the month. As the Reserve Bank of Australia (RBA) is set to maintain a dovish stance, economists at Rabobank expect the aussie to tick down towards 0.72.

AUD/USD to struggle to recover the lost ground

“The RBA’s central forecast for the Wage Price Index is for an increase of just 2.5% in 2022 and 3% in 2023. Underlying inflation is expected at 2.25% in 2022 and 2.5% in 2023. The central message remains a dovish one.”

“Assuming the RBA reiterates a cautiously dovish message in its next policy meeting AUD/USD could struggle to win back ground.”

“We target a move to 0.72 on a three-month view.”