Westpac's G10 FX model "continues to..........>

FOREX: Westpac's G10 FX model "continues to exercise caution toward AUD and NZD.

Despite some improvement to the tenor of recent NZ data including retail sales,

GDP and CPI our NZ growth signal remains depressed and among the weaker of the

G10. Yield spreads continue to trend against NZD and risk premia across global

markets have surged lately as well, leaving the model content to stick with

outsized NZD shorts for yet another week. In AUD's case our total yield signal

continues to deteriorate as AU-US bond spreads carry on a widening track against

AUD. CAD remains the preferred dollar bloc long albeit modest at 6% of the

portfolio. Elsewhere a decidedly risk averse tilt remains in place, the model

long both JPY and USD in size (>20%)."