Forex Flash: Australia strategy profile – NAB

FXstreet.com (Barcelona) - "The broad global uncertainty continues and is likely to keep AUDUSD in a range, which is a little higher than previously anticipated. The RBA's decision to remain on hold, coupled with strong employment biases the range to 1.0480 to 1.0330." writes the NAB Analyst Team.

We enter a period with far less domestic drivers, and revert to the global outlook for stronger near term AUD guidance. In this respect, the US fiscal uncertainty is currently keeping markets wary, while the ongoing Greek bailout likely comes to a head in the coming week. "As a base case, these events should all be resolved in favor of avoiding crisis at all costs, but may keep markets on edge in the interim." they warn.

We have closed curve-flattening trades given that yields in front of curve were close to upper band of expected trading range. "Given the cost of establishing steepeners our preference remains to wait for a rebound to re-establish flatteners. Curvature trades appearing in bond space with retracement to previous lows unlikely." the team predicts.