Australian dollar strategy
Credit Suisse maintains a bullish bias on AUD/USD and now targets 0.80 over the coming weeks.
"AUD has outperformed nearly all G10 currencies against the USD over the past month, notably rallying through the last two weeks of 2020 alongside global equities, at a time when the rest of the pro-cyclical FX complex stalled instead," CS notes.
"The main driver of AUD outperformance throughout that period has been the strength of the economic rebound, supported by the full reopening of the economy following the near complete eradication of Covid-19. This remains a largely unique trait within G10 (with the exception of fellow antipodean country New Zealand), which we think will continue to drive AUD strength in the coming weeks: we as such revise our AUDUSD target higher from 0.75 to 0.80," CS adds.
