XS2 front wheel mounting

[Brookside Cycles]

I am putting my XS2 back together. I bought it as someone's unfinished project, so I don't know how things where originally. My question today is, on the left fork, where does the axle sit? Do I slide it over towards the speedo housing, or does it sit flush to the outer edge of the axle, or somewhere in the middle?

thanks guys