The AUD/USD has been on a tear, with the symbolic 70-level in striking distance. Will the upswing continue for the Aussie?
Here is their view, courtesy of eFXdata:
Credit Agricole CIB Research advises against chasing AUD higher from current levels.
“RBA Governor Lowe failed to express concerns as when it comes to the risk of stronger currency’s dampening impact. However, with him having explained not long back that it is difficult to argue that the currency is overvalued, his rhetoric may not really come as surprise,” CACIB notes.
“While stable rate outlook should keep the AUD predominantly driven by external factors such as global risk sentiment, which stays fairly well supported, higher uncertainty on the virus front speak against chasing the AUD higher from here,”CACIB adds.
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