Westpac with a 1 to 3 month outlook for the AUD
TL;DR is:
- We look for 0.74 end-September
More:
The Aussie underperformed in the weeks of broad US dollar strength following the FOMC and ECB mid-June meetings but so far in July it has been near the middle of the G10 pack.
Weighing on AUD have been a pullback in key commodity prices, especially metals,
- bouts of investor concern over US-China trade tensions
- and the Fed's ongoing optimism on the US economy.
But support on dips has come from
- the relative brevity of trade-driven equity declines
- and Australian data generally decent enough for the RBA to maintain its bullish growth forecasts