Westpac Lifts AUD/USD Call

Westpac note that "on June 5 we sharply raised our forecast profile for AUD/USD to reach $0.72 by end 2020 and $0.76 by end 2021. At the time AUD/USD had just dropped back to $0.68 but we had decided that the resurgence we had seen since March was likely to be sustained for up to the next two years. Since then, as can be the case in the forecasting business, AUD/USD has lifted steadily to $0.72 – matching our year-end target. The case for this momentum to stall is not convincing so we are obliged to bring forward some of the strength through 2021 into the back end of 2020. Recall we expected AUD/USD to rise by $0.04 through 2021 to $0.76. Equally, we are still comfortable with a strong showing for AUD in 2021. Accordingly, we have boosted our end 2020 forecast from $0.72 to $0.75 while the 2021 scenario of a further solid boost to AUD remains intact with the resulting forecast for AUD/USD to reach $0.80 by end 2021."