CBA Remains Negative On AUD

CBA says: "We continue to see downward risks facing AUD with the Australia minus US 10 year bond spread below zero. We now expect GDP to contract significantly by 2.7%/qtr in Q3 21, with a meaningful rebound not expected until November. As a result, we have pushed out our call for the RBA to commence normalising the cash rate to May 2023 (from November 2022). We also expect the RBA to delay tapering its asset purchases until February 2022. The revised outlook is a headwind to AUD because the RBA will increasingly lag other central banks who are considering or already tapering asset purchases."