Citi on AUD/USD
Citi maintains a bullish bias on AUD over the coming months.
"In the statement from its October 6 board meeting, the RBA said that addressing the high unemployment rate was an important national priority. The market reacted by further pricing in the possibility of additional monetary easing, including a rate cut, by year-end.
We think this pricing in by the market is excessive, and even if the RBA were to deliver a rate cut, we would expect only limited depreciation in AUD," Citi notes.
"Though it largely depends upon the overall market environment, we believe the Aussie dollar could even appreciate and once again see its recent high at around 0.74 against the USD over the next few months," Citi adds.
