3 upside drivers for AUD into year-end. And 2 threats to the downside.

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• ANZ Research discusses AUD outlook in light of revising its AUD/USD forecast to 0.65 by year-end.
• "We forecast the AUD for year-end 2022 at 0.65 against the USD • We further expect the AUD to bottom out at 0.64 over Q1 2023, which coincides with a peak in the USD Index (DXY) at 115 Q1 2023 is also when we forecast the fed funds rate to peak at 5%, with the RBA expected to reach a terminal rate of 3.85% in May... From Q2 2023, we expect the AUD to begin appreciating slightly towards 0.66, ending 2023 at 0.68,"ANZ notes.
• "Drivers are the strong external balance, solid consumption into year end and declining bearish positioning...Derailers are China's slowdown and market beta factors, such as the decline in global equities and global risk sentiment," ANZ adds.