Currency strategists are tipping the Australian dollar to test US70¢ in the second half of this year as traders become increasingly confident that the US Federal Reserve will cut interest rates in September just as the Reserve Bank considers rate hikes.

The Aussie, alongside its New Zealand counterpart, were the top performers among the Group of Ten currencies last quarter, rising about 2 per cent against the greenback. That form has extended into this quarter, with the Australian dollar sitting above US67¢ – around its highest level since early January.