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Société Générale economists have analyzed the outlook for the AUD/USD currency pair as it surpasses 0.65.
Bullish Outlook Hinges on RBA Rate Hike
After experiencing setbacks over the past month and much of the past year, this week might offer the Australian Dollar a unique window to reclaim levels near 0.66.
If it breaks the late August high of 0.6522, the AUD/USD may move towards 0.66 or even 0.67.
The Reserve Bank of Australia (RBA) must raise interest rates by 25 basis points on Tuesday, and risk sentiment must remain stable.
The narrowing of Australia’s trade surplus and soft PMI data for October serve as warning signals, suggesting that overconfidence should be avoided.
