If policy rates were everything, the Australian Dollar would be cheaper, economists at Société Générale report.
Longer-term rates suggest more range-trading
If the AUD/USD pair starts trading short-term policy-rate expectations, the AUD may be in trouble.
Historically, long-term rates have been more of a driver and they suggest that the pair is going nowhere. Either way, we see no catalyst for a significant AUD/USD rally.
See: AUD/USD is well-supported on dips to the 0.65 zone but gains remain blocked above 0.68 – Scotiabank
