Last week, we brought you a trade idea from MUFG and it was to sell the Australian dollar.
They recommend selling the pair at 0.6400 with a target of 0.6050 and a stop at 0.6650.
“We are maintaining our short AUD/USD trade idea. We continue to expect the USD to strengthen further in the near-term as global financial conditions continue to tighten. The much stronger than expected US CPI report for September has reinforced our view that it is premature to expect a dovish Fed pivot,” MUFG notes.
“We expect the AUD/USD to fall back towards the 0.6000-level and closer to the COVID lows from March 2020,” they write.
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