Yesterday's softer Australian employment report provided an opportunity for Nomura to buy the dip in AUD/USD. The $15 mn tactical trade entered at 1.0515, with a protective stop at 1.0300, targeting a fresh high at 1.1081. Nomura's rationale behind this call revolves around the following 3 reasons: -With global risks receding, 2013 looks set to be dominated by low vol and strong carry performance. In G10 this should be positive for AUD. -Nomura expects Australia Q1 basic balance, to bounce back to around AUD6bn due to the lack of bond redemptions until May and a sharp rebound in iron ore prices. -Furthermore, the ... (full story)