AUD: Store-Of-Value Appeal Unlikely To Wane Anytime Soon; US Elections Key Risk – Credit Agricole
AUD: Store-Of-Value Appeal Unlikely To Wane Anytime Soon; US Elections Key Risk – Credit Agricole. Credit Agricole CIB Research discusses AUD outlook and targets AUD/USD at 0.71 by end of Q3 and at 0.72 by year-end. “RBA Governor Philip Lowe’s pledge to not take rates into negative territory in a world of negative interest rates has generated a ‘store-of-value’ appeal for Australian government bonds (AGBs).This appeal is unlikely to wane anytime soon,” CACIB notes. The run-up to the US presidential election, as Senator Joe Biden and President Donald Trump vie to sound the toughest on China, could present a challenge for the AUD. If President Trump is reelected, the rally in the USD would weaken AUD/USD,’ CACIB adds. For lots more FX trades from major banks, sign up to eFXplus.