MUFG: We continue to run long AUD/NZD despite the post-RBA correction lower

<p>MUFG, the Japanese financial services group, remains committed to a long position on AUD/NZD, expecting it to rally towards 1.12.</p><p>Key Points:</p><ol><li><p>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.</p></li><li><p>Unchanged RBA Guidance: The RBA has maintained its stance, signaling the possibility of a future rate hike.</p></li><li><p>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.</p></li></ol><p>Summary:</p><p>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.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1688655407226000&amp;usg=AOvVaw1-ZFEjq4yAnPkIXJYlXQOd">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1688655407226000&amp;usg=AOvVaw1-ZFEjq4yAnPkIXJYlXQOd">Get it here</a>.

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This article was written by Adam Button at www.forexlive.com.