Forex Flash: Australia strategy profile – Westpac

FXstreet.com (Barcelona) - According to the Westpac Strategy Team, "A great deal depends on the RBA on Tuesday, where the rate cut we expect should see a return to a 1.0200 handle while a steady hand would open up a run at 1.0475 - however, local jobs data will also be in focus in a crowded week."

In regards to the AU outright, the central debate for the market remains whether or not the RBA will alter its policy stance tomorrow. "While it looks like it will be a tight decision, we continue to expect another 25bp cut and recommend maintaining a small long position into the meeting." the team adds.

Finally, "the AU curve maintains an ongoing demand for long-end AU bonds underlines our medium term flattening bias, while we see scope the 3yr AU swap, whereby the EFP remains range-bound between the low and high 40s." they note.