I posted a few minutes ago on Australian dollar comments: UBS - Current strength of the Australian dollar is driven by the wrong reasons

Yesterday I posted this on 6 reasons Citi have for the AUD outperformance and their structurally bullish view.

Westpac view on the AUD is for 0.6600 at the end of September, the positives for the currency they summarise as:

  1. revival in global equities ... the positive correlation with risk appetite firmly intact
  2. iron ore above $100/tonne on both supply and demand trends
  3. helping Australia maintain a current account surplus for a full year
  4. Australia's outperformance on Covid-19 containment also raises the prospect of a sharper domestic economic rebound
  5. keeps the RBA comfortable with current policy settings

But ahead, and hence their lower projection into Q4:

  • the reality of a tepid global economy in H2 20 and woeful earnings reports likely to keep a lid on the global investor mood