Australia’s NAB Sees RBA Rate Cuts Starting In Q2 2027, Lowers AUD/USD View

Australia’s National Australia Bank said it was pessimistic about the Australian dollar’s outlook in 2027, citing expectations that the Reserve Bank of Australia will begin cutting interest rates by 75 basis points starting in the second quarter of 2027. According to Jin10, NAB said it now expected the Australian dollar to end 2027 at 0.6700 against the U.S. dollar, down from its previous expectation of 0.7000. The bank also said it believed the exchange rate would at some point fall to at least 0.6500. NAB added that if the RBA cuts rates next year while the U.S. Federal Reserve holds steady, the Australian dollar’s outlook would become even more subdued.