Comments again from Westpac (senior currency strategist Sean Callow, comments via Bloomberg)

In brief:

  • very skeptical of the foundations of the rallies in both Australian and New Zealand dollars since mid-March
  • says risk/reward is firmly lower
  • brutal economic and earnings data loom in the weeks ahead
  • likely to send AUD/USD to a 0.63 big figure, then toward Westpac's 0.62 end-June target
  • NZD/USD may also fall below 0.6000 near term

US dollar still safe haven currency in the era of coronavirus

  • AUD and NZD currencies are most closely correlated with the global growth outlook and risk appetite, thus lower