A summary of comments from MUFG on their outlook for the Australian and New Zealand dollars.
AUD:
- zero-tolerance COVID policy could weigh on economic growth
- MUFG cite plunging retail sales in June (recall these were a huge 1.8% drop)
- and a similar huge drop in flash PMIs (Services 44.2, to a 14-month low)
NZD:
- monetary policy will be tightened soon
- no fresh outbreaks of COVID in New Zealand will reinforce the RBNZ's determination to hike
MUFG target 1.0250 for AUD/NZD
