Credit Agricole: AUD/USD long-term downside risks remain intact – eFXnews

FXStreet (Barcelona) - The eFxnews Team notes Credit Agricole comments on the recent price action in AUD post RBA’s release, and further views that the long –term Aussie bear trend remains intact.

Key Quotes

“On the day, risk correlated currencies like AUD (aka the 'bad') appreciated, regardless of the RBA easing monetary policy further. This is mainly due to the notion that the central bank may have reached the lower end of its rate easing cycle."

“However, when it comes to the currency it must still be noted that it was indicated that a further depreciation is necessary in order to support the economy. This in turn suggests that any tightening of monetary conditions on the back of a stronger currency will still not be tolerated. As such we expect longterm currency downside risks to remain intact.”

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