AUD/USD: A deeper pullback now appears unlikely – UOB

Further retracements in AUD/USD now seem to have lost some momentum, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “AUD traded between 0.6773 and 0.6802 yesterday, narrower than our expected consolidation range of 0.6770/0.6830. The relatively quiet price actions offer no fresh clues and AUD could continue to consolidate, likely between 0.6780 and 0.6830.”

Next 1-3 weeks: “Last Friday (02 Sep, spot at 0.6800), we highlighted that AUD is likely to weaken and a break of 0.6750 would shift the focus to 0.6705. However, AUD has not been able to make much headway on the downside as it consolidated the past couple of days. Downward momentum has waned and a break of 0.6870 (no change in ‘strong resistance’ level from yesterday) would indicate that AUD is unlikely to head below 0.6750.”