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FX Strategists at UOB Group believe the bearish phase around the Aussie Dollar could be drawing to a close.

Key Quotes

24-hour view: “Against our expectation for further strength, AUD traded sideways yesterday within a range of 0.7397/0.7443. The consolidation phase appears incomplete and further range trading is expected from here, likely between 0.7390 and 0.7440″.

Next 1-3 weeks: “While we highlighted in the recent updates that the bearish phase in AUD is “approaching oversold levels” and indicated that any “weakness is likely limited to 0.7330, 0.7300″, the strong rally last Friday came as a surprise (AUD gained +0.83% and closed at 0.7439). However, the ‘stop-loss’ level at 0.7455 is still intact and only a break of this level would confirm an end to the current bearish phase. This scenario appears to be likely unless AUD can move and stay below 0.7375 within these 1 to 2 days”.