MUFG: We continue to run long AUD/NZD despite the post-RBA correction lower | Forexlive
MUFG, the Japanese financial services group, remains committed to a long position on AUD/NZD, expecting it to rally towards 1.12.
Key Points:
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Continued Long AUD/NZD Position: MUFG continues to hold a long AUD/NZD position as part of their trade idea mentioned in their FX Weekly report. Despite a recent correction lower following the RBA’s (Reserve Bank of Australia) decision to keep interest rates unchanged, MUFG anticipates renewed support for the AUD moving forward.
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Unchanged RBA Guidance: The RBA has maintained its stance, signaling the possibility of a future rate hike.
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Greater Economic Damage from RBNZ Rate Hikes: MUFG believes that the consequences of rate hikes by the RBNZ (Reserve Bank of New Zealand) will have a more pronounced detrimental effect on the economy, which they predict will lead to the AUD outperforming the NZD.
Summary:
MUFG continues to hold a bullish stance on AUD/NZD, targeting a move towards 1.12. This comes despite a recent dip following the RBA’s decision to leave interest rates unchanged. MUFG believes that the RBA’s unchanged stance signaling potential for a future rate hike, coupled with the economic impact of RBNZ’s rate hikes, will result in a renewed outperformance of the AUD against the NZD.
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