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Westpac notes that its G10 FX "model's........>

FOREX
FOREX: Westpac notes that its G10 FX "model's strong aversion to the NZD remains
intact, the model upping its short to 25%. Meanwhile the model is flat AUD, even
though the RBA has signalled its intention to deliver more cuts while the RBNZ
has sounded more balanced. One key difference is that Australia's external
accounts are in rude health. In Q1 Australia's current account deficit narrowed
to a thirty nine year low of 0.6% of GDP, sharply boosting our current account
momentum signal in AUD's favour. Elsewhere the model finally flips to an EUR
short, albeit modest at 8% and exits its USD short."
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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