Credit Agricole Audusd To Peak

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Credit Agricole Audusd To Peak

Credit Agricole: AUD/USD To Peak

According to Credit Agricole, the AUD/USD pair will be near 0.73 in the next 3-4 months. This comes at a time when the AUD/USD is already trading at multiple years high.

In a nutshell, Credit Agricole believes that the Australian Dollar will continue its uptrend in the coming months. Earlier, Credit Agricole had set a target of 0.67 for the AUD/USD, which has now been raised to 0.73.

RBA To Deliver More Rate Hikes

However, Credit Agricole added that the AUD/USD will eventually fall to 0.70 in the second half of 2026. But in the next few months, the monetary policy will continue to be the main catalyst for the AUD/USD.

The market players think that the RBA will continue with more rate hikes in the next few months. Meanwhile, at least 2 rate cuts from the US Federal Reserve are expected.

So, the rate difference also favors the AUD against the USD based on market assumptions and the Credit Agricole forecast. Also, the ongoing geopolitical tensions favor the AUD as the country is not involved in any direct conflict.

However, the bank warned that the gains in the AUD have started to look a little unrealistic and overstretched. They also added that the AUD is already overpriced and it might correct itself during the second half of 2026.

In 2H2026, the bank believes that the RBA will only deliver one more rate hike. On the other hand, the US Fed will stop its rate-cutting cycle during that period.

So, the end of the Fed's rate-cutting cycle and the RBA slowing down with its hawkish stance will mark a turning point for the AUD/USD. But even that will not be enough to break the long-term trend of the AUD/USD.

The bottom line is that the AUD will remain strong against the USD in 2026. Even during the second half of this year, the AUD will still continue to trade at multiple years high against the USD.

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