AUD/USD could be one to watch next week – MUFG

Matías Salord FXStreet

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.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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