AUDUSD: Maintaining a bearish bias but with higher targets – Credit Suisse

Economists at Credit Suisse raise their Q4 AUDUSD target from 0.6200 to 0.6400 and their target range from 0.6100-0.6750 to 0.6300-0.6950.

Expectations around RBA policy are still too constructive

“While we acknowledge that the risk of a sharp correction lower in AUDUSD from current levels has decreased, we remain skeptical of the idea that AUD has significant upside potential from current levels.”

“Our bias remains bearish: the risk of disappointment around relations with China is high, and expectations around RBA policy are still too constructive.”

“We raise our Q4 target range from 0.6200 to 0.6400, and we move the top end of our target range from 0.6750 to just below the 200-Day Moving Average at 0.6950. We also raise the low end of our target range from 0.6100 to 0.6300.”