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Westpac note that "the Aussie's mid-August...>

AUSSIE
AUSSIE: Westpac note that "the Aussie's mid-August slide to $0.72 on
Turkey-inspired global risk aversion left it quite oversold when judged by our
short-term fair value estimate, which remains near $0.75. AU-US yield
differentials have continued to drift in the US dollar's favour in recent weeks
but Australia's key commodity prices have been mixed, overall a little higher
since mid-August and a long way above March lows. Still, AUD risks probably
remain to the downside in September ($0.70 handle), given the confluence of FOMC
meeting, US review of China tariffs and EUR/Italy budget risks. By year-end we
see AUD/USD back to $0.73."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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