In opinion of FX Strategists at UOB Group, the bullish bias in AUD/USD seems to be running out of steam.
Key Quotes
24-hour view: “We highlighted yesterday that ‘upward pressure has eased and this coupled with unwinding of overbought conditions suggests AUD is likely to consolidate for today’. Our view was not wrong even though AUD traded between 0.7253 and 0.7294, narrower than our expected range of 0.7240/0.7315. The quiet price actions offer no fresh clues and the current movement is still viewed as part of a consolidation. In other words, AUD is expected to continue to trade sideways for today, likely within 0.7245/0.7305 range.”
Next 1-3 weeks: “Last Friday (06 Nov, spot at 0.7260), we indicated that ‘the 0.7300 level may not be able to hold the advance in AUD but only a clear break of 0.7345 would indicate that AUD is ready to challenge the year-to-date high at 0.7413’. AUD rose to a high of 0.7340 yesterday (09 Nov) but was not able to hold on to its gains (closed at 0.7282). While upward momentum has waned somewhat, only a break of 0.7200 (‘strong support’ level previously at 0.7180) would indicate that 0.7413 is out of reach this time round.”
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