Analysts at RBS are maintain a cautiously optimistic view on the Australian dollar, AUD. Currency analysts say that they expect AUD/USD to revisit the highs around 1.10 over the next 6 months. In contrast to interbank futures, RBS Economics do not expect RBA to retract from rate increases. New Zealand Dollar outlook Elsewhere the forecast for the New Zealand dollar is also bullish. According to current market expectations for future rates, RBNZ the only central bank in developed currency universe expected to hike rates this year; the RBS team expects even more rapid hikes, portending further NZD upside. Canadian Dollar The Canadian Dollar, CAD, on the other hand could face some downside risks. Some risk of a downside surprise in Wednesday’s Q2 GDP, which could deteriorate BoC rate expectations further, increasing potential for CAD downside. Otherwise broader risk backdrop will remain key driver of CAD.

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