Westpac see upside for the AUD
Westpac's June forecast has seen the AUDUSD reaching their year end target of 0.72 sooner than they anticipated. Westpac see further gains for AUD and the 0.81 figure by the end of 2021. Key points from their rationale are:
- Iron ore prices expected to keep rising on strong Chinese demand
- Ongoing central bank stimulus
- Australia's current account surplus
- Developments with vaccines
- Australian fiscal and monetary policy
One of their keys risks to this outlook is more stimulus from the RBA and the introduction of negative interest rates. However, on the whole a pretty optimistic update from Westpac.
