The RBA’s decision to walk back its hawkish shift points to credibility issues ahead: economists at Credit Suisse now drop their bullish AUD bias and target AUD/USD 0.6400 by end Q1.
AUD: Are you GBP in disguise?
“The RBA’s decision to walk back its hawkish shift in its 7 Mar decision amid domestic political pressures points to renewed credibility issues, and casts AUD as the new GBP.”
“We think markets will now be more reluctant to price in a more volatile outlook, even if the data confirms.”
“With the RBA’s outlook now fundamentally challenged, and against a backdrop of increasing Fed tightening pressure, we have now abandoned our bullish AUD position, and we see downside risks to AUD/USD likely to extend to 0.6400 by the end of the quarter.”
