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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”.