AUD/USD: Defensive bias – ANZ

USD weakened against most crosses overnight, as virus headlines worsen, while the AUD underperformed owing to its higher global beta. Analysts at ANZ Research maintain a defensive bias heading into the weekend. AUD/USD trades at 0.6641.

Key quotes

“Shifting risk dynamics around the outbreak of COVID19 have created downside pressure for the AUD, which is closely linked to activity in Asia via tourism and export of raw materials.” 

“The near-term prospects for the AUD are, therefore, likely to hinge on transmission rates and scale of activity slowdown.”    

 “Spot: 0.66 ANZ Fair value: 0.67”