UBS Raises AUD/USD Target to 0.74 on Strong Aussie Fundamentals, Pair Up 0.3%

UBS has lifted its year-end AUD/USD price target to 0.74, citing robust Australian fundamentals including $10 billion monthly trade surpluses, elevated iron ore/coal prices, resilient labor market, and hawkish RBA stance. Initially reported early on May 6, the forecast—issued March 18, 2025—projects 0.72 by Q2-end and triggered a 0.3% immediate AUD/USD rise, boosting long positions. The bank favors EUR/AUD shorts targeting 1.61 Q2-end and 1.54 year-end, with AUD/NZD at 1.22 and 1.20, signaling sustained AUD strength unless global risks intensify.