Weekly trade from Mitsubishi UFG
Currency investors should consider buying AUD/USD, advises MUFG Research in its weekly FX pick.
The suggest buying AUD/USD from 0.7435 with a target of 0.7675 and a stop at 0.7225.
"We are recommending a long AUD/USD trade idea to further reflect our view that the USD remains vulnerable to further weakness in the near-term. The USD has broke below key support levels over the past week triggering an accelerated sell-off. Historically, the USD has tended to underperform as well in December," MUFG notes.
"The next key resistance level for AUD/USD comes in at the 0.7500-level. A decisive break above would establish a new higher trading range between 0.7500 and 0.8000," MUFG adds.