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AUD/USD is probably overshot but 0.54 handle quite possible, in the opinion of analysts at Westpac Institutional Bank.

Key quotes

“Illiquid markets and global financial stresses present a very difficult backdrop for the Aussie with no real support ahead of the Sep 2002 low around 0.54, then 0.5265 in Aug 2002.”

“In terms of yield spreads, commodity prices, etc, fair value suggests AUD/USD has overshot.”

“Renewed volatility seems the only safe bet for the week ahead, as huge losses in a range of global markets rebound on risk- and growth-sensitive currencies like AUD.”