AUD Gains Ground on RBA Hawkishness and Strong Commodity Demand

The Australian Dollar (AUD) is expected to rise against the US Dollar (USD), according to Standard Chartered, which forecasts the AUD/USD exchange rate to reach 0.74 in three months and 0.75 over a year.

The bank cites several factors supporting this prediction, including the Reserve Bank of Australia's (RBA) decision to maintain restrictive interest rates and Governor Michele Bullock's statement that rates could rise again if necessary.

In addition, Standard Chartered notes a softer US Dollar, improving Chinese growth momentum, and supportive commodity conditions as tailwinds for the AUD.

The bank also mentions gold as a secondary supporting indicator, with a correlation between XAU/USD and AUD/USD rising to +0.82 over three months from +0.59 over three years.