Free Trial
FOREX

Antipodeans Keep Lagging Behind

US TSYS

Flatter Early On

AUSSIE BONDS

Remaining Under Pressure

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
FOREX
FOREX: Westpac note that "GBP is just one of many currencies the AUD
outperformed thru April as global risk appetite improved. A$'s positive
correlation with equities & global growth prospects was prominent in the
GFC/afterwards & remains intact this year. The durability of the rebound in risk
appetite is the key question for AUD. Supportive factors include open-ended QE
programs by major central banks, FX swaps lines & plans by many OECD gov'ts to
loosen COVID-19 restrictions. The latter raises the prospect of a considerable
rebound in the global econ in H220. We exp. that the extended period of brutal
economic data & waves of earnings downgrades globally will weigh on risk
appetite including equities in coming weeks. Moreover, doubts over the scale of
the exp. recovery may grow. Both the RBA & BoE are pursuing very expansionary
MonPol & fiscal support is substantial, especially in Aus, where the C/A
position is much more supportive & Australia's much lower COVID-19 case count
should mean a quicker restarting of econ activity in Aus. These factors should
ensure AUD remains well above Mar lows but given our baseline view on global
risk appetite, we see AUD/GBP 0.5050/0.5100 or GBP/AUD 1.96-1.98 multi-week."
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

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.