The AUD / USD should remain prey to the feeling of global risk, sometimes probing 0.6150 / 70 but globally biased towards 0.58 over several weeks, by the Westpac Institutional Bank.
“The payment proposed by JobKeeper Australia is a radical plan which suits an extraordinary blow to the economy. The government should save a large number of jobs and limit the contraction in GDP. “
“We expect a shocking drop of -8.5% in Q2 production, even if the much-promised return to surplus becomes a deficit of -5% of GDP for the year to June, dropping to -10 , 5% in 2020/21, the largest deficit since World War II. “
“The AUD / USD rebound extended farther than expected, hitting 0.62. Yet our bias is unchanged, looking for failures to rally to the handle of 0.61, risking a return at 0.58-0.59 at the start. “