FX Strategists at UOB Group see the outlook on the Aussie Dollar as neutral for the time being, while a test of levels beyond the 0.7300 handle is not ruled out.
Key Quotes
24-hour view: “Expectation for AUD to trade sideways was wrong as it dropped quickly to a low of 0.7220. Despite the drop, downward momentum has not improved by all that much. That said, AUD could test the 0.7200 support first before recovering (the next support at 0.7175 is not expected to come into the picture). Resistance is at 0.7245 followed by 0.7270″.
Next 1-3 weeks: “Despite overall positive indications, AUD has not been able to make much headway on the upside. It touched a high of 0.7303 last Thursday (08 Nov) but has since eased off. For now, we continue to see chance for AUD to test the strong 0.7315 resistance. However, in order to maintain the current momentum, AUD has to move higher soon (say within this week) as a prolonged consolidation would quickly diminish the prospect for further AUD strength. Conversely, a break of the 0.7150 ‘key support’ (no change in level) would suggest that 0.7303 is a short-term top”.
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