In opinion of FX Strategists at UOB Group, AUD/USD should keep the 0.7660-0.7800 side-lined theme unchanged for the time being.
Key Quotes
24-hour view: “Yesterday, we held the view that AUD ‘could edge above 0.7775’. Our expectation did not materialize as AUD registered a high of 0.7765. However, the sharp sell-off in AUD during NY session that sent it to a low of 0.7692 came as a surprise. While the rapid drop appears to be a bit overdone, the weakness in AUD could test 0.7685 first before stabilizing. Resistance is at 0.7730 followed by 0.7755.”
Next 1-3 weeks: “We continue to hold the same view as from Wednesday (21 Apr, spot at 0.7730). As highlighted, the current movement is viewed as the early stages of a consolidation phase and AUD is expected to trade between 0.7660 and 0.7800 for now. While the underlying tone has softened somewhat, it is too early to expect a clear break of 0.7660.”
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