ICYMI: Westpac on where the risk lies for the AUD (spoiler: downside)

Westpac have popped up their outlook for the Australian dollar into September

This in (very) brief summary (bolding mine):

• finally breaking down ... mid-August on Turkey-inspired global risk aversion
• Such levels were quite oversold when judged by our short-term fair value estimate, which held nearer 0.75
• AU-US yield differentials have been broadly stable in recent weeks, while Australia's key commodity prices have been mixed, overall holding well within 2018 ranges
• Still, AUD risks probably do still lie to the downside in September, given the confluence of FOMC meeting, US review of China tariffs and EUR/Italy budget risks.

WPAC highlighting Italy risks - yes, this will be a focus in coming weeks