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

FOREX: Westpac note that the AUD "has fallen against almost all Asian currencies

over the past 3 months as it has factored in the RBA's change of tune on

interest rates since early February. But the Chinese yuan has risen more than

most other Asian currencies in this time. We expect RBA easing to continue to

undermine AUD/CNY multi-month, with an end-September target of 4.66. But nearer

term, the pair could bounce if the RBA holds rates steady until August, in line

with Westpac forecasts. Markets are pricing >40% chance of the RBA cutting the

cash rate to 1.25% next week and >100% chance by July. So if the RBA takes a

more cautious approach to easing policy, AUD should bounce on crosses including

CNY. FX stability remains a priority for Chinese policymakers. Having avoided

USD/CNY 7.00 in Oct-Nov 2018, the yuan appreciated about 3-4% over Dec 2018 to

Jan 2019 as US yields fell to reflect the Fed's more dovish message. But since

then, USD/CNY has been largely rangebound either side of 6.70. AUD should be the

main driver of AUD/CNY in coming months."