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Economists at Westpac have lifted Australian 2021 growth forecast to 2.8% from 2.5% and 2022 from 2.7% to 3.5% following the 2020/2021 Budget. The AUD/USD pair is holding a tough battle with key resistance below the 0.7200 level.

Key quotes

“The Budget provides two major sources of policy to boost the economy around household incomes and tax incentives to invest. We recognise both effects in our revised forecasts and, at the same time, see significant above trend growth in 2022 associated with a confidence boost.”

“We have lifted our GDP forecasts in 2021 from 2.5% to 2.8% and in 2022 from 2.7% to 3.5%.”