AUD: RBA Will Only Be Able To Constrain Rather Than Change AUD Uptrend Direction – Credit Agricole

With the Australian dollar surging lately, what can we expect from the RBA?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research discusses the RBA policy outlook in light of the recent AUD gains.

“We remain of the view that the RBA is coming in late to the currency war and can only at best match the actions of major central banks on the QE front, especially the Fed.

So going forward and given China’s strong rebound from Covid-19 and Australia’s strong current account surplus,  the RBA will only be able to constrain rather than change the direction of the AUD’s uptrend. Investor focus will now move beyond the US elections and to the aftermath,” CACIB notes.

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