FXstreet.com (Barcelona) - According to the Westpac Strategy Team, "Ongoing local data weakness, lingering spec positioning overhang and RBA easing hints have helped produce weakness for the AUDUSD, culminating in fresh lows since October. However, with -50bp already priced by October and China data momentum intact into the lunar new year, the AUDUSD should find buyers towards 1.0200 on the week."

In addition, 3yr bond yields appear to be in an upward sloping trend channel, which means we are now looking for tactical opportunities to sell into rallies rather than being 'buyers on dips'.

In regards to the AU curve, the 3-10yr briefly broke higher before once again returning to its old 56-63bp range, which should hold over the coming week. Finally, in terms of AU swap spreads, "we are more comfortable receiving 3yr swap EFP though we are not expecting the 25-35bp range to break given the recent reductions in fixed rate mortgage rates which should lead to opportunistic pay side fl ows from bank balance sheets." the team adds.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center