Westpac write that the "AUD has been..........>

FOREX: Westpac write that the "AUD has been undermined in recent months by

sliding AU yields as markets priced in a dovish shift by the RBA that was

confirmed in Feb, even if a rate cut remains <50% priced in until August. CNY in

contrast has enjoyed intra-regional outperformance, which arguably reflects

authorities prioritizing currency stability and discouraging capital outflows.

Multi-month though, we see USD/CNY trending higher, to 6.90 by June, as Fed rate

rises return to the agenda. Nearer term, with support from resilient commodity

prices, plenty of RBA easing risk already priced and highly flexible AUD likely

to benefit more than CNY from a looming US-China trade deal, AUD should gain on

most crosses. We see scope for AUD/CNY to push back to 4.90/4.95."