VIEW: Goldman Sachs note that "as part of....>

AUSSIE: VIEW: Goldman Sachs note that "as part of the coronavirus fiscal

response, the Australian gov't included a measure that allows eligible people to

access A$10,000 from their pension funds with no penalty in two installments:

(1) between mid-April & FY end and (2) in the next FY (after June 30). In the

weeks leading up to April 20 - the start of the 1st withdrawal period - AUD was

the 2nd-best performing currency globally, only surpassed by IDR. Historical

trading volumes around that period suggest the rally was primarily driven by

pension funds selling overseas equities and converting the returns (of unhedged

holdings) to AUD. We think we could see a similar dynamic in the coming week or

so, ahead of July 1, as funds prepare for another round of withdrawals. Although

there may be more limited need for foreign asset sales than in the 1st round

(given some people that made early withdrawals had less than A$10,000 in their

account and, therefore, cannot participate in the second round), we think net

short AUD positioning leaves scope for a potentially quick reversal on any

upside pressure. More broadly, we continue to like AUD/NZD longs but acknowledge

the trade will be challenged as long as risk sentiment remains choppy."