Westpac suggest that the AUD is finding......>

AUSSIE: Westpac suggest that the AUD is finding support from "the domestic

growth and interest rate outlook and perhaps inbound direct investment. It is

also worth noting that the pipeline of publicly announced merger and acquisition

inflow to Australia is close to 2-year highs. Any AUD demand from such deals

will not be derailed by e.g. Italian political wrangling.

- The bank goes onto note that the "AUD's domestic story is also broadly

positive - at least in relative terms, which is of course what matters for

currencies. The RBA has made clear that it expects the next move in the cash

rate to be up, so long as its forecasts are broadly accurate. They should be

pleased with Q1 GDP data on Wed. Today's capex survey showed a stronger than

expected 2.5%qtr rise in Q1 plant & equipment spending, causing our economics

team to raise its GDP forecast to 0.9%qtr, 2.8%yr. Even if there are some

downside surprises in the partial data Mon and Tue that weigh on the actual GDP

outcome, Australia should still report a faster quarterly growth pace in Q1 than

e.g. the US, UK, Eurozone and Japan. Global volatility may persist, but so too

could AUD outperformance on crosses."