FXStreet reports that economists at Westpac discuss AUD/USD prospects.

“Aussie underperformance is to be expected when risk aversion picks up, but Australia’s covid lockdowns have also weighed, with Q3 GDP likely to show a steep contraction. The $80 tumble in iron ore prices in just a month has not helped, a reminder that a less robust trade position lies ahead.”

“Near-term risks are for a test of 0.70 if the USD remains solid. But by late Q3 and early Q4 the aussie should be finding support from the conversion of historically immense mining dividends, AUD18 B or more. By October Australia’s catch-up on vaccination should be starting to result in eased restrictions. The AUD/USD pair should recover to around 0.75 at this stage, with our year-end target still 0.78.”