Westpac note that "Q4 2019 included two......>

AUSSIE: Westpac note that "Q4 2019 included two key positive developments for

global risk appetite - the Brexit deal breakthrough and the US-China "Phase One"

trade deal. This was enough for the Aussie to reach highs since July.

Domestically, Australia continues to print trade surpluses and iron ore's

3-month highs are backed by a bounce in copper prices (coal remains a weak

spot). Yet $0.6950 did not give way and it is easy to imagine US-led trade

tensions returning in 2020. Most importantly, we expect the RBA to lower its

Australia GDP forecasts and cut the cash rate in Feb, an outcome only about 50%

priced. The Aussie should continue to meet sellers with a $0.69 handle over

year-end, with risks below $0.67 on anticipation of or delivery of a Feb cut."