MUFG trade of the week: Sell NZD/USD
Mitsubishi UFG on the week ahead
Consider selling NZD/USD, MUFG Research says in its weekly FX pick.
NZD/USD is trading down 13 pips to 0.6533 today. They say to target 0.6300 with a stop at 0.6710.
"The RBNZ signalled its willingness to ease its monetary stance further at its meeting this week. However, the first step likely was the launch of a Funding for Lending Program that will be up and ready to run by the end of the year," they note.
"The futures market in New Zealand does not anticipate any quick shift into negative rates territory or any action to intervene directly to lower the level of NZD... We also have month-end to consider next week with the expectations in the market of USD-demand related flows," MUFG writes.