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AUD: No Longer At The Forefront Of The Growth Recovery; Neutral Here – Credit Suisse

What is the outlook for AUD over the coming weeks?

Here is their view, courtesy of eFXdata:

Credit Suisse discusses AUD outlook and  adopts a neutral bias over the coming weeks.

“Australia remains a successful Covid-19 containment story, but the lagging vaccine rollout suggests it will no longer be at the forefront of the global reflationary story.  We are now neutral and see AUDUSD trading in a range between 0.7415 and 0.7800.

“The terms of trade still validate AUD’s pro-cyclical status: further upside in iron ore prices might however be limited near-term amid concerns of Chinese liquidity draining. Sub-6% unemployment rates also raise the prospect of tapering of fiscal support, after the expiration of the Jobkeeper Act. The 11 May government budget is a key event,” CS adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.