The Australian Dollar is making its way higher, quite quietly. What’s next?
Here is their view, courtesy of eFXdata:
CIBC Research discusses AUD outlook and adopts a structural bullish bias targeting AUD/USD at 0.77 by the bend of Q3 and at 0.80 by year-end.
“The odds of the RBA delivering a rate hike in November have retreated, but we consider the improving macroeconomic backdrop a catalyst for AUD strength.
The probability of a hike coming in conjunction with the November Statement on Monetary Policy has fallen from nearly 80% three months ago to now stand at a little over 20%.
But policymakers remain confident in the economy, stating that “progress on both inflation and unemployment is expected”. CIBC argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.