A move beyond 0.7765 should mitigate downside pressure in AUD/USD, suggested FX Strategist at UOB Group.
Key Quotes
24-hour view: “AUD traded between 0.7675 and 0.7726 before closing slightly higher at 0.7696 (+0.15%). Momentum indicators are mostly neutral and AUD could continue to trade sideways. Expected range for today, 0.7680/0.7735.”
Next 1-3 weeks: “We indicated on Monday (18 Jan, spot at 0.7695) that ‘downward pressure is beginning to build but AUD has to break 0.7640 before a deeper pullback can be expected’. We added, ‘the prospect for a break of 0.7640 is not high for now but would remain intact as long as the ‘strong resistance’ at 0.7765 is not breached’. AUD subsequently dropped to 0.7659 before recovering slightly. While downward pressure has eased somewhat, only a break of 0.7765 would indicate the downside risk in AUD has dissipated.”
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