Has the Aussie lost its sparkle? Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes AUD outlook

RBA rates to be 75 bps below Fed rates by year-end

The decision to raise rates was a close call, and while we look for one more hike in this cycle, that is already priced into market expectations. 

At the end of this year, we expect RBA rates to be 75 bps below Fed rates, almost exactly what is currently priced into the market. 

The RBA needs to become more hawkish if we are to see AUD/USD trade back above 0.70.