Forex Flash: Australia strategy profile, AUD/USD targeting 1.0500/50 – Westpac

FXstreet.com (Barcelona) - According to the Westpac Strategy Team, "the AUDUSD looks likely to keep testing a little lower, with the 1.0345/60 region at risk of being tested as a long speculation market squares up a little. However, with global sentiment mostly positive and a quiet local calendar, a grind back towards 1.0500/50 would be no surprise as well."

In terms of AU Swaps, the 3yr EFP spreads are approaching levels whereby a tactical paid position looks attractive. In particular, "Our medium term bias however, remains towards spreads tightening." they add.