In brief summary of comments from Westpac on the Australian dollar
The domestic outlook surely doesn't argue for further AUD gains
- Victoria's Covid-19 resurgence prompting a return to lockdown in Melbourne for 6 weeks
- This will damage both Victoria's economy and other states as interstate tourism falters again and consumer confidence is shaken
Renewed strength in key commodity prices, with iron ore around $106/tonne, and global equities resilient despite the US's coronavirus surge adds to the case for A$ resilience.
- But the aussie would still be pricey above 0.70, with risk/reward suggesting selling into the 0.70 handle on a multi-week view.
