VOT Research Desk
Credit Suisse economists lift their AUDUSD target for the fourth quarter from 0.6200 to 0.6400 and their target range from 0.6100-0.6750 to 0.6300-0.6950, respectively.
We remain dubious about the notion that the Australian dollar has strong upside potential from present levels; even though we acknowledge that the risk of a sharp reversal down in AUDUSD from current levels has diminished.
Our bias is still negative because expectations for RBA policy are still too high and there is a large potential for disappointment in terms of relations with China.
We increase our Q4 target range from 0.6200 to 0.6400 and lower our target range’s top end from 0.6750 to 0.6950, which is barely below the 200-Day Moving Average.
The low end of our target range is likewise increased from 0.6100 to 0.6300.
