Extra gains in AUD appear to have lost traction – UOB
|In view of FX Strategists at UOB Group, the upside momentum in the Aussie Dollar seems to have run out of steam in the near term.
Key Quotes
24-hour view: “We expected AUD to trade sideways between 0.6845 and 0.6885 yesterday. However, AUD dropped to 0.6831 before rebounding strongly to end the day unchanged at 0.6865 (0.0%). The rapid swing has clouded the short-term outlook and we continue to expect AUD to trade sideways for today, likely between 0.6845 and 0.6885”.
Next 1-3 weeks: “We have held the same view since last Tuesday (10 Sep, spot at 0.6865) wherein AUD “is ready to tackle 0.6910”. After touching 0.6895 last Thursday (12 Sep), AUD has not been able to make much headway. The quiet consolidation over the past several days has resulted in a rapid loss in momentum and unless AUD can ‘punch’ above 0.6900 within the next 24 to 48 hours, a break of 0.6825 (no change in strong support level) would not be surprising. In other words, the odds for further AUD strength have diminished and a break of 0.6825 would indicate that 0.6895 is the extent of the recovery phase that started earlier this month”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.