Strategists target a higher Australian dollar with a conviction of 3/5.

"We enter a new long AUD/USD trade," say strategists at global investment bank Nomura, on Tuesday.

"We think AUD looks cheap relative to a range of cross-market indicators," they say.

The call comes amidst renewed outperformance by the Aussie , which is now the best performing G10 currency for of the past week.

Nomura lists the following factors for the call:

The recent calming of US-China trade tensions.

Commodity prices – most notably copper – remain elevated "and this should provide support to AUD".

With these tariff fears receding, there's scope for AUD to catch up with interest rate spreads, which favour a higher valuation

Expect this week’s Australia Q3 CPI to be a positive catalyst for AUD

There are a

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