AUD / USD vulnerable to risk aversion – Citibank

Citibankanalystsbelievethatshort-termAustraliandollarsarevulnerabletoriskaversion.Thethree-monthtargetofAUD/USDremainsat0.62,andwithinsixtotwelvemonthstheAUD/USDwillreboundto0.67.Keypoints:“Thechangeinthenumberofnon-agriculturalemploymentintheUnitedStatesrecorded-20.5millioninApril,andtheunemploymentrateroseto14.7%,buttheemploymentdatawasbetterthanexpected,supportingtheUSdollarandsuppressingtheAustraliandollar.Australia’stradeaccountrecordedasurplusinMarch,reachingarecord10.6billionTheAustraliandollarisbetterthanexpectedandsupportstheAustraliandollar.""Short-termAUD/USDwillbevulnerabletoriskaversion,especiallyifeconomicgrowthexpectationsarestilllikelytobelowered.However,AustraliaislikelytobenefitfrommaintainingclosetraderelationswithChina.ChinahasrecentlytakenamoreactiveTheeasingmeasureswilleventuallyaffecttheAustralianeconomy.""Australia/USDisclosetotheoverboughtarea,short-termupsideisb ...

Coronavirus plunges global economy into recession-National Bank of Canada

Thereisnodoubtthatthecoronavirusimpactin2020willhavealastingimpactontheworldeconomy.EconomistsattheNationalBankofCanadaexpectglobalGDPtoshrinkby4%in2020."Socialalienationmeasures,whilenecessarytolimitinfectionandmortality,willalsolimittheexpectedreboundingrowthinthesecondhalfof2020andnextyear.""WeexpectrealglobalGDPtocontractby4%thisyear,butthisassumesthatfurtherdownsideriskswillnotoccur.""By2021,somegovernments,especiallythoseindevelopedeconomies,willwithdrawsomeextraordinaryfiscalstimulusmeasuresimplementedthisyear,whichwillfurtherlimittheextentofeconomicrecovery." ...