BNP Paribas on the Australian dollar
BNP Paribas FX Strategy Research discusses AUD/USD near-term outlook noticing that the pair has declined to fresh H2 lows around 0.7550.
"The Reserve Bank of Australia (RBA) is fully priced for a 25bp hike in Q1 2019 and there is a 40% implied chance of a hike by Q3 of 2018.s to see signs of stronger wage growth.
AUDUSD has traded through our 1-m target of 0.76. We do not expect AUDUSD to decline to H1 lows below 0.74 but at this stage are lowering our 1m target to 0.75 given our expectation for US yields to continue to re-price higher," BNPP projects.
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