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

FOREX: Westpac note that "AUD has played a familiar role in recent weeks, highly

positively correlated with global risk sentiment and a high beta anti-USD play,

underperforming other currencies against the US dollar from February into late

March, then outperforming markedly in April as equity markets rebounded sharply.

Official Chinese data indicates that the economic damage from Covid-19 was

heavily concentrated in January and February, followed by a sharp rebound in

March, at least in industrial activity. Further growth would of course benefit

both China and Australia, whose iron ore exports to China surged in March. The

yuan has been supported by the PBoC not opting for the ultra-expansionary

monetary policy of most central banks and by global travel restrictions which

shrink China's services deficit. Policymakers are choosing currency stability

over export competitiveness. It is not clear that Australia's encouraging

coronavirus case trend will translate to much fresh support for A$ if risk

appetite deteriorates over coming weeks in what will be a devastating quarter

for the global economy. We see AUD/CNY risks back towards 4.35-4.40 multi-week."