Lowering target range from 0.7100-0.7450 to 0.7050- 0.7400
Credit Suisse discusses its outlook for AUD/USD for Q4.
"Differentials between AUD OIS and USD OIS suggest that the Antipodean currency is unlikely to get much support via the rates channel. Since Morrison introduced the 70% vaccination target in July, only the 3yr differential has meaningfully gained ground," CS notes.
"We lowered our AUDUSD target range from 0.7100-0.7450 to 0.7050- 0.7400 for Q4: the already constructive growth and policy outlook priced in ahead of key reopening dates makes us view AUD as asymmetrically exposed to the downside in the near-term. Late Sep lows around 0.7170 are likely to be in focus," CS adds.
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