UOB Group’s FX Strategists noted that further downside momentum in AUD/USD now appears mitigated.
Key Quotes
24-hour view: “Last Friday, we highlighted that ‘there is scope for the sharp drop in AUD to extend but a sustained decline below 0.7400 is unlikely’. AUD subsequently dropped to 0.7410 before staging a surprisingly sharp and swift rebound to 0.7495. The rapid rebound appears to be overdone and AUD is unlikely to advance much further. For today, AUD is more likely to trade between 0.7450 and 0.7500.”
Next 1-3 weeks: “We highlighted last Friday (09 Jul, spot at 0.7430) that ‘risk for AUD is clearly on the downside’ and that ‘support levels are at 0.7400 and 0.7365’. AUD subsequently dropped to 0.7410 before rebounding sharply to 0.7495. While our ‘strong resistance’ level at 0.7500 is still intact, downward momentum has waned considerably and the prospect for AUD to break 0.7400 has diminished. In order to rejuvenate the flagging downward momentum, AUD has to move and stay below 0.7450 within these 1 to 2 days or a break of 0.7500 would not be surprising.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD trades with mild positive bias near 0.6700, RBA Meeting Minutes eyed
The AUD/USD trades with a mild positive bias near 0.6695 during the early Asian session on Monday. The weaker US Dollar provides some support to the pair. The markets remain unconvinced that the Fed will pivot earlier than previously expected.
EUR/USD gains ground above 1.0850, focus on Fedspeak
The EUR/USD pair trades on a stronger note around 1.0875 on Monday during the early Asian trading hours. The uptick in the major pair is bolstered by the softer Greenback. The Federal Reserve’s Bostic, Barr, Waller, Jefferson, and Mester are scheduled to speak on Monday.
Gold gains ground above $2,400, eyes on Fedspeak
Gold price gathers strength around $2,415 during the early Asian session on Monday. The softer US inflation data in April provides some support to the yellow metal. Meanwhile, the USD Index edges lower to 104.50, losing 0.03% on the day.
AI tokens could really ahead of Nvidia earnings
Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report.
Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.