In opinion of FX Strategists at UOB Group, AUD/USD could be headed towards the mid-0.6900s in the near term.
Key Quotes
24-hour view: “We highlighted yesterday AUD “could grind higher but the strong 0.6950 level is unlikely to come into the picture” and added “minor resistance is at 0.6930″. AUD subsequently touched 0.6925 before staging a surprisingly sharp and rapid pull-back. The swift decline appears to be running ahead of itself but there is room for AUD to test 0.6860 first before the current short-term weakness should stabilize. Resistance is at 0.6905 followed by 0.6930. The latter level is acting as a rather solid resistance now.
Next 1-3 weeks: “AUD rose to 0.6925 yesterday (04 Nov), several points below last week’s 0.6930 peak before retreating quickly to end the day on a soft note (0.6886, -0.039%). Upward momentum has been dented and our view from last Friday (01 Nov, spot at 0.6895) wherein AUD is “expected to trade with an upside bias towards 0.6950″ appears to be at risk. That said, only a break of 0.6835 (no change in ‘strong support’ level) would indicate the upward bias has eased and that AUD is not ready to move to 0.6950 just yet”.
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