AUD/USD could break higher towards 0.70 – SocGen

Market news

6 November 2023

AUD/USD could break higher towards 0.70 – SocGen

Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes AUD/USD and USD/JPY outlook.

USD/JPY can fall further if yields stay here

USD/JPY has tracked yield differentials faithfully and has not overreacted to last week’s development by any stretch. On that basis, EUR/JPY looks very vulnerable, as well as USD/JPY.

As for AUD/USD, the RBA meeting will determine short-term sentiment, but relative yields suggest AUD/USD could break higher towards 0.70. That feels far-fetched, but we expect a 25 bps rate hike to 4.35%.

United Kingdom S&P Global/CIPS Construction PMI above expectations (44.5) in October: Actual (45.6)

USD/MXN trades around 17.4200 post rebounding from a two-month low

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