With the various stress points (Sino-US tensions, rising virus incidence) not alleviating and the aussie nearer top end of the range, Terence Wu from OCBC Bank will not chase AUD/USD higher for now. The bias remains for the pair to revert to a range-bound posture for now while below 0.7060 and with 0.69 holding the downside.
Key quotes
“Four consecutive sessions of gains have seen the AUD/USD move near the top end of its recent ranges. Remain skeptical on a range break at this stage, especially with the usual suspects of risk-off still lurking in the horizon.”
“The aussie may need to extend north of 0.7060 to revert to a clear uptrend. For now, still expect the pair to stay range bound, with 0.6900 as the first support on the downside.”
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