Strategists at Credit Suisse revise their bullish AUD/USD target from 0.7350 to 0.7550, as rising inflationary pressures point to risks of an earlier-than-expected hawkish turn in Reserve Bank of Australia (RBA) policy.

More upside down under

“We revise our bullish AUD/USD target from 0.7350 to 0.7550, we would look to buy dips below 0.73 and see the pair in a range between 0.72 and 0.76.”

“Second-tier data indicators show rising inflationary pressures, pointing to further risks of an earlier-than-expected hawkish turn in RBA policy rhetoric.”

“Markets will likely continue to view AUD as a clean expression of commodity price strength.”