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Australia’s Covid-19 trend is very encouraging but given the brutal economic data facing the world in coming weeks, equities should drag the Aussie back to 0.62 or below, according to Westpac.

Key quotes

“We suspect that the Aussie will be unable to ignore any broad-based weakening in global risk appetite, which we continue to expect in coming weeks.”

“Our end-June forecast is 0.62 but the first target should be the 50-dma, currently 0.6284.” 

“Confirmation of a huge drop in employment on 14 May could be one catalyst for renewed AUD/USD decline.”