Credit Suisse's recommended short-term forex trade for this week

In a note to its clients, Credit Suisse shares its favoured short-term forex trading suggestion for this week.

"Since the beginning of October, expectations of an RBA rate cut in November fell 28% to just 12%. From current levels, we believe that there is a greater risk of a dovish than hawkish surprise.

The AUD looks "strong" on several short-term technical indicators. The AUD outperformed most currencies in the G10 against the USD since the beginning of the month, leaving it exposed to a correction against the strengthening dollar.

Forex traders should look to sell the AUD/USD this week.

The main risk in this trade is that the AUD/USD will not weaken enough in the absence of a dovish tone by the RBA."

Credit Suisse has placed a limit order to sell the AUD/USD.