The bank says its forecasting 0.72 for the AUD against the US dollar by the nedd of the year

  • They were previously at 0.70

Westpac cites:

Fed to hike rates three times this year (previously WPAC was at 2 hikes)

  • 25bps hikes in March, June and September

And:

  • Lower tax rates
  • lower USD
  • lift in the U.S. share market

Have all led to eased financial conditions (despite the higher bond rates)

WPAC also citing the higher starting point for the AUD a reason for the bump in the year end forecast, and further

  • RBA (on hold this year)
  • and Commodity Price views unchanged
  • AUD/USD 10-year bond spread to go negative in the H2 of 2018

On the Kiwi:

  • NZD/USD level of 0.6500 at year end