MUFG recommends buying EUR/AUD at 1.62 and targeting 1.67 along with buying CAD/CHF at 0.7160 with a target of 0.7340.
"We see scope for the repricing of EUR fragmentation risks to help the euro's performance relative to other G10 currencies... When you then consider the potential for China-US tensions to potentially re-emerge at any point, that would suggest scope for AUD to correct by a larger extent in the G10 space than other currencies," MUFG writes.
"We are recommending a long CAD/CHF trade idea. The position should benefit from a continuation of a global recovery trades... EU recovery fund proposals, German fiscal stimulus and looser ECB policy have all helped to ease concerns over the European economy which will encourage a weaker CHF as well," they write.