According to FX Strategists at UOB Group, the Aussie Dollar could still test the 0.7140 area vs. the greenback in the next weeks.
Key Quotes
24-hour view: “AUD traded within a tight 0.7207/0.7231 range yesterday before ending the day at 0.7225. While the overall outlook appears to be ‘neutral’, the underlying tone has firmed somewhat and this could lead to a probe of the strong 0.7240 resistance. The next resistance at 0.7260 is a much stronger level and is unlikely to yield. From here, 0.7200 is acting as a solid support”.
Next 1-3 weeks: “In our update last Friday (28 Sep, spot at 0.7205), we held the view that AUD is “expected to stay under pressure in the coming days” and “0.7140 is a solid support and is unlikely to yield so easily”. The price action since then has been lackluster at best and the recent mild downward pressure has eased somewhat. That said, only a break of 0.7260 would indicate that a short-term low is in place. Until then, there is still a slim chance that AUD may test the 0.7140 support but this has to happen within these 1 to 2 days”.
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