Economists at Credit Suisse remain alert to the possibility of stronger data surprises, and restate their firmly neutral stance on AUD/USD, as per the 0.6600 end-Q3 target.

Going nowhere fast 

We remain sceptical of the market’s shift to a clearly dovish RBA outlook and remain alert to the possibility of near-term corrections, e.g. on occasion of the SOMP release on 4 Aug or of the Q2 wage price index and July employment data in mid-Aug. 

We stay neutral on AUD/USD with an end Q3 target of 0.6600 and remain committed to fading moves close to the extremes of our Q3 range between 0.6350 and 0.6900.