Westpac note that "AUD price action.....>

EURO-AUSSIE: Westpac note that "AUD price action has been more constructive in

recent weeks, the Aussie showing resilience to global equity turbulence.

Moreover, multi-month highs for Australia's commodity export price basket - led

by iron ore and coal - implied less damage from trade wars than feared, at least

in the short term. Meanwhile, the euro was undermined in October by the selloff

in Italian bonds as the new government proposed a looser budget than the EC

demanded. In coming weeks, rather than Italy, the bigger question for EUR is

likely to be whether the Eurozone economic slowdown continues. Our Eurozone data

pulse is below 30% versus 52% over 2017, while Q3 GDP growth of 0.2% was the

weakest since 2014. This focus on Eurozone data into the Dec ECB meeting

contrasts to the RBA's plausible projection of Australian GDP growth remaining

above 3% into 2019. This should help AUD extend its recovery against the euro

multi-week to AUD/EUR 0.6325/50 or EUR/AUD 1.5750/1.5800."