BofA recommends buying Australian dollar on China's economic growth prospects

Bank of America recommends buying the Australian dollar against the US dollar at a rate of 0.6546, with a target level of 0.69 and a stop loss at 0.6350.

The bank considers the Australian dollar to be the second worst performing currency among the G10 countries since the beginning of the year, just behind the Canadian dollar. However, according to BofA analysts, Australia's currency will be one of the leaders in growth against the greenback in the second half of 2025.

The bank cites several favorable factors for the Australian dollar, pointing to the expected recovery of China's economic growth and a decrease in the likelihood of negative political influences on investor sentiment.

Regarding the US dollar, BofA forecasts its gradual weakening. Analysts attribute this to a potential Federal Reserve interest rate cut and the anticipated investors' US dollar sales.