A snippet from Westpac's latest on the Australian and New Zealand dollars
WPAC citing in brief):
- outlooks for their respective main commodities, posing downside risks over the medium term
- Oil prices have plunged over the past year, partly due to excess supply, but also due to a dire economic outlook
- metals tend for follow (or co-move with) oil
- iron ore prices have help up ... mainly due to supply bottlenecks .. Once those have been cleared, there's potential for iron to more closely reflect the deterioration in demand. So too for coal
For the AUD
- multi-month, we hold a negative bias ... targeting as low as 0.59.
