BofA AUD Model Projects 1% Upside

Bank of America launched an AUD model valuing the currency at 0.7240, roughly 1% above the April 29 spot of 0.7185.
The model incorporates export-price commodity index, three-year yield spread, and a copper‑to‑S&P 500 ratio proxy for global growth versus US equities.
BofA cites upside risks including possible RBA‑Fed policy divergence, a US‑China trade deal, and higher superannuation fund hedge ratios.
Historically, commodity‑outperforming periods have supported the AUD, and the bank expects similar tailwinds this year amid elevated volatility.