Free Trial

Westpac Look For $0.76 At End Of Q1

AUD

Westpac note that "the Aussie has barely paused since bouncing off 0.70 vs. USD in early November, with mid-December highs close to 0.76 the strongest levels since June 2018. Rapid global equity gains following the US elections, the related optimism over Covid-19 vaccines, and resurgent iron ore prices all played a role. With the US dollar under broad pressure, further appreciation is likely into early 2021. However, our end-Q1 21 forecast of 0.76 implies some headwinds capping gains, including the RBA's aggressive A$100bn QE program (with potential for more), ongoing pain for Australia's tourism and education exports, and tensions with China which will impact both investment and exports."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.