A deeper pullback to the 0.6620 in AUD/USD does not appear likely for the time being, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “The relatively robust rebound in AUD that touched an overnight high of 0.6737 came as a surprise. The rapid advance appears to be running ahead of itself and further sustained AUD strength is not expected for now. From here, AUD is more likely to trade sideways, expected to be within a 0.6695/0.6635 range.”
Next 1-3 weeks: “The lack of a ‘follow-through’ after breaking last year’s low of 0.6670 came as a surprise. This coupled with the robust rebound of +0.40% yesterday (NY close of 0.6715) suggests AUD may not be ready to tackle 0.6620 just yet. From here, a break of 0.6740 (no change in ‘strong resistance’ level) would indicate that our view from Monday (10 Feb, spot at 0.6675) wherein AUD could weaken towards 0.6620 is wrong.”
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