Westpac note that "AUD has..............>

EURO-AUSSIE: Westpac note that "AUD has underperformed recently, seemingly

punished for Australia's political turmoil, a weight that may be persisting,

judging by its low beta response to episodes of broad USD decline. In coming

weeks, neither ECB nor RBA policy seem likely to be important for their

currencies. But the ECB will be watching developments in Italy's budget, while

Q2 GDP data is the key release in Australia. Both EUR and AUD seem vulnerable to

September's US risk events, notably the FOMC meeting, a decision on tariffs on

$200bn of Chinese imports and expiration of US government funding. Overall,

risks look tilted to further AUD decline, to A$1.61, but probably not much

further given concerns over Italy's budget."