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

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• ANZ Research discusses AUD AUD The Australian dollar (AUD) is the official currency of Australia, which is also used in Christmas Island, Cocos (Keeling) Islands, Norfolk Island, as well as independent pacific states.Introduced in 1966, the AUD is currently the fifth most traded currency in the world, behind only the US dollar, euro, Japanese yen, and British pound.The currency is very important to forex markets and is routinely used as a carry trade against other majors.The Reserve Bank of Australia (RBA) is the central bank The Australian dollar (AUD) is the official currency of Australia, which is also used in Christmas Island, Cocos (Keeling) Islands, Norfolk Island, as well as independent pacific states.Introduced in 1966, the AUD is currently the fifth most traded currency in the world, behind only the US dollar, euro, Japanese yen, and British pound.The currency is very important to forex markets and is routinely used as a carry trade against other majors.The Reserve Bank of Australia (RBA) is the central bank Read this Term 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 Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term and global risk sentiment," ANZ adds.