Westpac out with some comments on the.........>

FOREX: Westpac out with some comments on the Antipodean FX space:

- AUD/USD: AUD has been one of the worst performers in the broad-based USD rally

since the Jun FOMC & ECB meetings. It is now below our weekly fair value

estimate for the first time this year. If US-China trade tensions remain the mkt

focus in coming weeks, risks are to $0.72/0.73. But Australia's key commodity

prices have been broadly resilient, especially LNG and thermal coal, suggesting

AUD downside should be contained multi-month. The RBA should also be optimistic

on Australia's growth outlook in its Aug statement. We look for 0.75 end-Sep.

- NZD/USD: USD should strengthen if the Fed hikes further & that will push

NZD/USD lower. In addition, the NZ-US int rate advantage has been eroded,

removing one of the prev NZD attractions. Domestic data indicates the NZ economy

is slowing. We expect NZD/USD to fall to 0.68 by Sep & 0.67 or lower by Dec.

- AUD/NZD: AUD has underperformed the NZD recently, as it tends to do when

global risk sentiment sours. If US-China trade tensions subside, then AUD/NZD

should rebound beyond 1.0800 (which is fair value currently) towards 1.10 during

the next few months.