A$ to remain resilient into year end - Westpac

FXStreet (Bali) - Rob Rennie, FX Strategist at Westpac, notes that A$ fair value continues to fall, down by around 12% in 2014, although Rob also believes that A$ is set to remain resilient into year end supported by flows.

Key Quotes

"Our simple fair value model for the A$ has fallen by around 12% so far this year to 0.85 as commodity prices have fallen and volatility has increased."

"However, from a flow perspective we continue to see good demand for the A$ yield; and as we move beyond this weekend's ECB AQR, we see ECB liquidity programs adding to our measure of global liquidity. That's why I continue to expect the A$ to remain resilient into year end."