AUD/USD to challenge the 0.7170 September low - Credit Suisse

FXStreet reports that economists at Credit Suisse see priced-in hawkish monetary policy expectations amid regional growth concerns as limiting scope for further AUD strength, expecting AUD/USD to re-test recent lows around 0.7170.

“We see limited scope for AUD to continue to benefit from the lifting of existing stay-at-home orders. With iron ore prices 50% below this year’s peak, and Chinese growth risks in focus, current GDP expectations look vulnerable to a pullback, if the path to reopening is challenged. The timeline for international travel is also uncertain.”

“We view the market’s hawkish expectations as a hindrance for AUD, if economic data were to falter, or if reopening plans were to be postponed.”

“We lowered our AUD/USD target range from 0.7100-0.7450 to 0.7050-0.7400 for Q4.” 

“Late Sep lows around 0.7170 are likely to be in focus.”