Free Trial

Westpac Still Target $0.75 At Year End


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 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.