Westpac updates their AUD/USD forecasts - now expect to 0.74 by year’s end (prior 0.72)

(in brief) We have slightly revised our forecast profile for the AUD/USD following a review of our forecasts for commodity prices.

• AUD/USD will hold around AUD/USD 0.77 to June (prior was AUD/USD 0.76)
• falling to AUD/USD 0.74 by year's end (prior AUD/USD 0.72)
• We had expected AUD/USD to reach 0.70 by March 2019 before recovering somewhat to AUD/USD 0.72 by September. We now expect AUD/USD to reach 0.70 by September 2019 and to hold around that level to year's end.

BTW -this has not hit news wires yet

WPAC citing

"a review of our forecasts for commodity prices"

The key drivers behind our views remain in place:

• a fall in commodity prices through 2018 and 2019
• a sharp widening in the AUD / USD interest rate differential
• and some reversal of the current trend for the USD to weaken against the other majors

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Earlier today on the Australian dollar:

• Australia - NAB changes RBA interest rate call - now expects one rate hike in late 2018
• More on NAB's change of call for the RBA (I hike in 2018 vs. call for 2 previously)