Westpac updated their view on the Australian dollar in the weeks ahead.
This posted by the bank last week)
- Rising long yields are likely to be an ongoing challenge for A$ as global equities balance an improving earnings outlook with potential portfolio shifts to bonds.
- The US dollar may also now be on more solid footing as the huge fiscal plan is enacted and growth forecasts are raised.
- However, iron ore prices around $170/tonne helped Australia print a record high trade surplus in January and anticipation of synchronised global recovery should help maintain a bullish outlook for the Aussie.
- We should see ongoing demand on any dips towards 0.76 multi-week, with a bias towards the top end of February's range, back near 0.80 in April.
