Attention shifted to 0.6895 in AUD/USD – UOB

In opinion of FX Strategists at UOB Group, AUD/USD has now shifted its interest to the 0.69 region.

Key Quotes

24-hour view: “The strong rally in AUD came as a surprise as it surged to a high of 0.6833 before closing at 0.6826, up by a whopping +0.95%, the largest 1-day gain since Jan this year. While the strong rally appears to be running ahead of itself, it is too early to expect a pull-back. From here, barring a move below 0.6790, there is room for AUD to extend its gains to 0.6860″.

Next 1-3 weeks: “Our view for AUD the last couple of days was not great as we expected AUD to “probe the bottom of range” on Wednesday (16 Oct) before indicating yesterday (17 Oct, spot at 0.6775) that AUD could trade in an ‘undecided’ manner between 0.6710 and 0.6810. The subsequent price action was anything but indecisive as AUD surged and registered the largest 1-day gain since Jan this year (+0.95%). The risk has shifted to the upside and the focus is at last month’s peak of 0.6895. On the downside, only a break of 0.6750 (‘strong support’ level) would indicate AUD is not ready to move higher just yet”.