AUD/USD: Aussie has very limited upside – SocGen

If policy rates were everything, the Australian Dollar would be cheaper, economists at Société Générale report. 

Longer-term rates suggest more range-trading

If the AUD/USD pair starts trading short-term policy-rate expectations, the AUD may be in trouble. 

Historically, longer-term rates have been more of a driver, and they suggest the pair is going nowhere. Either way, we see no catalysts for a significant AUD/USD rally.

See: AUD/USD is well-supported on dips to the 0.65 zone but gains remain blocked above 0.68 – Scotiabank