Westpac’s new Australian dollar forecasts
- for the end of this year target is 0.78 (from 0.80)
- and for H2 of 2022 the target expected peak is 0.82 (from the previously forecast 0.85)
That H2 peak is a chinku 8c higher from the current level.
WPAC issued their revised forecast Friday last week.
One of the main factors WPAC cite for looking for a higher AUD (ps. their note is long and detailed, so this is just a very short highlight, bolding mine):
- Government advice points to an adequate supply of Pfizer and Moderna through the second half of 2021. Optimistically Australia can be on track for 60% fully vaccinated (compared to the current 10%) by late November with the possibility of moving further although with 25% of the population under 20 there will be a natural limit to the proportion of the population vaccinated.
- Australia’s adult population could become one of the most highly vaccinated globally by the first quarter of 2022. That would be a Game Changer for Australia and the Confidence that would earn from markets.