Wednesday saw CBA note that "the second...>

AUSTRALIA: Wednesday saw CBA note that "the second tranche of early Australian

superannuation redemptions will be available from 1 July 2020. The first tranche

sparked concern that AUD would be impacted as foreign assets were sold. To date,

there is little evidence the first tranche impacted AUD. We doubt the second

tranche will prove any different. First, funds have bolstered liquidity and hold

large cash balances. The Superannuation Association shows Australian super

funds' cash allocation rose from 10% to 14% between February and June 2020.

Second, any extra foreign assets that may need selling to meet redemption demand

is small in relation to daily AUD turnover. Third, demand for the second tranche

is likely to be less than the first. The economy has begun to reopen and jobs

are restarting. The Government's JobSeeker and JobKeeper payments likely also

reduced the need for early access."