Westpac's G10 FX model has made an............>

FOREX: Westpac's G10 FX model has made an "aggressive lurch into the USD,

doubling its long to 40% of the portfolio in a week that is of course replete

with consequential event risk including the FOMC & ECB meetings and the US/North

Korea leaders' summit. The USD already boasts the strongest growth and yield

signals in the G10 and they firmed yet further last week (see slide over). The

model's caution on EUR continues to build, the model expanding its short to 21%.

EUR enjoys positive growth and current account momentum signals but against that

all other signals in our suite are EUR negative. The dollar bloc holds little

appeal for the model. CAD is held in relatively higher regard than either AUD or

NZD due to Canada's stronger growth signal, but otherwise the model remains

marginally short both AUD and NZD."