Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS reiterated its positive stance on the Australian dollar following the Reserve Bank of Australia’s (RBA) decision to cut its cash rate by 25 basis points to 3.6%, a move that was widely anticipated by markets.
The investment bank specifically recommends establishing long positions in the Australian dollar at 0.64 or below, suggesting AUD/CHF and AUD/CNY as additional currency pairs to consider for long Aussie positions.
RBA Governor Michele Bullock expressed confidence during her press conference that the central bank’s 2.5% inflation target could be achieved "with a couple more cuts," providing clarity on the expected policy path.
The RBA’s Statement of Monetary Policy supported this outlook by maintaining trimmed mean CPI forecasts at 2.6% year-over-year until the second quarter of 2027, with the newly added end-2027 forecast at 2.5%.
UBS maintains its forecast for two additional 25 basis point cuts in November and February, though it plans to review this projection following the release of labor market data on August 14.
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