Westpac write "AUD has gained steadily........>

FOREX: Westpac write "AUD has gained steadily against the pound over the past

month, as the improvement in global risk appetite has produced the usual AUD

outperformance and as the Brexit debacle weighed on sterling once again.

Multi-week however, we expect the Aussie to lose momentum, as commodity prices

become less supportive and in particular as the case for RBA rate cuts becomes

clearer. Markets currently only fully price 1 cut by Oct-Nov and <50% chance of

another by Q1 2020. While it is hard to be confident of how Brexit negotiations

will play out in coming weeks and months, the new 31 October deadline does at

least offer the opportunity for sterling to be less jittery about repeated

parliamentary votes and PM May's trips to Brussels. Our base case of GBP/USD

roughly range-bound in the low 1.30s and AUD/USD slipping back to around 0.70

implies AUD/GBP returns to the 0.5325/50 area, GBP/AUD to 1.8700/50 by

end-June."