FXStreet reports that economists at Westpac note that Australia’s Covid-19 trend is very encouraging but brutal economic data globally and China tensions suggest near-term risks are to 0.6300/50.

“The headline unemployment rate only rose 1ppt to 6.2% but the underemployment rate of 13.7% is more indicative of the Q2 slump in activity, as is -9.2% for hours worked.”

“Australia’s export outlook remains worrisome and now agriculture such as barley and beef is being threatened by China bans. China’s relations with the US are also deteriorating by the day.”

“AUD/USD rallies should falter in the mid-0.65s, with risks to 0.6300/50.”