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USDCAD TECHS

Stronger In a Range

AUDUSD TECHS

Weaker In A Range

US TSYS SUMMARY

Ending The Week On A Soft Note

EURJPY TECHS

Bearish Risk Growing

USDJPY TECHS

Stronger, But Still Vulnerable

US

SP500 PE Ratio vs. CPI Inflation

Westpac Still Target $0.75 At Year End

AUSSIE

Westpac note that the "northern summer's risk rally and USD rout extended to AUD/USD 0.74 on 1 Sep. Since then, headwinds have sprung up, including US equity wobbles as the election looms and fiscal support wanes, along with a rebound in Covid-19 cases in the US and Europe. The RBA's dovish shift adds weight to the A$, with consensus growing for not just cuts in official rates to 0.1% in November but some form of QE. Trade below 0.70 may become frequent near term. But this would be a buying opportunity. The RBA is still not attracted to negative rates and Australia's historically large trade surpluses provide some insulation. Moreover, we expect an improvement in risk appetite post-US election and aggressive Fed easing, undermining USD multi-month. We retain our 0.75 year-end target."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com