📝 Australia May Be Transitioning to "Less Risky" Status: Westpac Strategy

AUD’s beta to global “risky” market returns has fallen to multi-year lows. Paralleling that, Australia’s national savings continue to cycle above national investment requirements (slide five, right panel). The evidence remains mostly circumstantial, but the inference is that AUD may not be the optimal tail-risk hedge it has famously been over the years. - Westpac Strategy