AUD/USD strategy from MUFG
MUFG Research discusses AUD/USD outlook on the valuation front, and flags a scope for a turnaround in the near-term.
"Our yield-differential model suggests that the Aussie is undervalued against the dollar and that fair valuation is currently closer to the 0.7000 level it held against the US dollar before its recent decline in July.
The Relative Strength Index indicated yesterday that a turnaround could be expected - it was the most oversold of the G10 currencies," MUFG notes.
For bank trade ideas, check out eFX Plus.
