In view of FX Strategists at UOB Group, the prospects for the Aussie Dollar stay on the neutral side for the time being.
Key Quotes
24-hour: “We expected a higher AUD yesterday but held the view that “any advance is unlikely to have enough momentum to overcome last week’s top at 0.7605″. AUD subsequently hit a high of 0.7593 before easing off quickly. Upward momentum has eased considerably and the 0.7605 resistance is not expected to come into the picture for today. From here, we expect AUD to drift lower but any weakness is viewed as part of 0.7535/0.7590 consolidation phase and not the start of a sustained decline”.
Next 1-3: “AUD touched a high of 0.7593 yesterday and the strong resistance indicated at 0.7605 was untested. Despite the subsequent pull-back from the high, we continue to detect a supportive undertone and still see chance for a test of 0.7605. That said, it is too early to expect the start of a bullish phase as only a break of the major 0.7645 level would indicate that AUD is ready to move higher on a sustained basis”.
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