AUD/USD remains well within the striking distance of its highest level since late August. Economists at Société Générale believe that the pair could reach the mid-0.70s.

Scope for bearish rate surprises is limited for now

“The RBA is still dragging its feet and the monetary/fiscal policy mix isn’t helpful, but the rates market is only pricing another 75 bps of hikes from here, so scope for bearish rate surprises is limited for now.”

“We dream of AUD/USD trading in the 0.80s but while that may be too much, the mid-0.70s are within reach.”