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AUD/USD bounced much further than we thought but given the wave of brutal economic data facing the world in coming weeks, equities should drag the Aussie back towards 0.60, in the opinion of analysts at Westpac.

Key quotes

“We lean towards rallies being fragile, as investors face an extended period of alarmingly weak data.”

“In Australia’s case the March jobs report didn’t capture the wave of job losses from late March as thousands of businesses were forced to close. Westpac expects sharp deterioration from the April survey, with unemployment heading to 9%.”

“The renewed slide in oil prices is another negative for the Aussie. AUD/USD rallies to 0.6350/0.6400 should falter, with scope back to 0.60 multi-week.”