AUD/USD could be one to watch next week – MUFG
|Analysts at MUFG Bank, point out that the Australian dollar has moved closer to a fair value against the US dollar but they warn it remains vulnerable in the near term on a technical basis. Still, they see positive signs for the week ahead.
Key Quotes:
“A currency to watch over the coming two weeks in the G10 space might be AUD. Short-term yields are breaking higher. The stronger Australian employment report for November has reinforced that positive dynamic. The 2-year yield is 24bps higher since the start of December and reached as high as 0.90% today. The November high (0.92%) and the September high (0.94%) could be breached which could trigger some AUD demand.”
“Technically, AUD/USD looks positive with the trendline resistance from highs through the downtrend from June 2018 now breached. If the US dollar maintains a weaker tone over the holiday period, AUD/USD could outperform.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.