NAB note that "FX markets may be seeing......>

AUSSIE: NAB note that "FX markets may be seeing volatility well back from its

last March peak, but this hasn't stopped the AUD in particular continue to push

ahead - or rather, in part because of declining volatility in other asset

markets - albeit the run up in AUD this month has extended far beyond what the

(quite limited) improvements in risk metric most pertinent to the AUD would

justify. The overnight AUD/USD high of $0.6515 is the best level since March 10

while month-to-date, AUD is up by 5.8% against the USD which is over 4% more

than any other G10 currency. This is quite extraordinary (it didn't underperform

the G10 pack by nearly as much in March) and does leave us a little cautious

about the near term outlook, especially as the calendar clicks over the May.

Yesterday NAB and BNZ's FX strategy team revised up its forecast for AUD/USD to

$0.6750 for end 2020 and $0.72 for end 2021 and while our end-Q2 forecast was

also lifted, we have it lower than now ($0.62)."