AUD/USD further weakness unlikely – UOB
FX Strategists at UOB Group believe extra downside in the pair seems to have lost momentum in the near term.
“AUD touched a ‘fresh low’ of 0.7532 yesterday before rebounding strongly and in the process, registered an outside day”.
“We have highlighted in recent updates that despite the ‘over-extended’ decline, there is room for further weakness towards the rising weekly trendline support at 0.7475/80”.
“The strong bounce yesterday has clearly diminished the odds for further AUD weakness even though only a break of 0.7640 would indicate that the current bearish phase has ended”.
“In the meanwhile, another leg lower towards 0.7475/80 is not ruled out but AUD has to move and stay below 0.7530 within this 1-2 days or downward momentum would wane quickly”.