In opinion of FX Strategists at UOB Group, the short-term stance in AUD/USD remains positive.
Key Quotes
24-hour view: “Yesterday, we held the view that AUD ‘could grind higher towards 0.7195 and that the next resistance at 0.7230 is likely out of reach’. AUD subsequently rose to a high of 0.7209 before pulling back. Upward pressure is beginning to ease and AUD is unlikely to strengthen further. That said, it is premature to expect a significant pull-back. All in, AUD could drift lower but any weakness is viewed as part of 0.7140/0.7205 range.”
Next 1-3 weeks: “There is not much to add to our latest update from Wednesday (30 Sep, spot at 0.7140). As highlighted, while the overall movement in AUD is viewed as part of a consolidation phase, the short-term bias is titled to the upside. However, any advance is viewed as part of a broader range of 0.7030/0.7230. In other words, a sustained rise above 0.7230 is unlikely.”
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