AUD/USD scope for a test of 0.7475/80 – UOB
The outlook on the Aussie Dollar stays neutral, although a there is still room for a test of the 0.7475/80 band vs. the greenback in the near term, suggested FX Strategists at UOB Group.
24-hour view: “AUD traded within a narrow 30 pips range yesterday, between 0.7544 and 0.7574. While the recent downward pressure has eased, it is too early to expect a sustained recovery. Further range trading is expected, albeit likely at a slightly higher range of 0.7535/0.7585”.
Next 1-3 weeks: “The outlook for AUD shifted to bearish last week when it broke clearly below the major 0.7600 support. The sharp and rapid decline appears to be over-extended but there is room for further weakness towards 0.7475/80. This level is the rising trend-line support on the weekly chart (connecting the 0.6827 low in Jan 16 and 0.7163 low in Dec16) and is expected to offer solid support. On the upside, only a move back above 0.7640 would indicate that the current bearish phase has ended”.