A bit of a catch up on a WPAC report from late last week, saying:
- Vaccine success is expected to support a strong recovery in the global economy in 2021. As risks subside and investors focus on return, the US dollar will continue its downtrend. We now expect a further decline in the DXY index of around 5% instead of 2% a month ago. Asia ex-Japan will lead the way, outperforming the DXY trend.
On the AUD:
- we are comfortable to project the upward momentum in AUD into 2022 reaching a high of USD0.82 before flattening off in the second half although there are clear upside risks to this scenario.
