Societe Generale Research likes buying AUD/USD around current levels, especially if the pair hold the 0.70 level going into the RBA's November meeting.
"Futures are fully pricing a 15bp cut, and AUD/USD is approaching key psychological support at 0.70., so a neat outcome would be for the cut to come, the support to hold, and we can get long AUD/USD then," SocGen notes.
"But if they cut to just above zero, and then maintain a very clear dovish bias with more comments on negative rates, all bets are off except for bond-buyers. Not convinced that flat-out monetary easing is the right policy in economies where there is ample room for easier fiscal policy, but if that’s where Australia is heading, we're not going to fight it (yet). Either way, AUD/USD 0.70 holding would make life easier!," SocGen adds.