AUD/USD: extra gains likely above 0.6845 – UOB


In opinion of FX Strategists at UOB Group, a move beyond the 0.6845 area in AUD/USD would allow for sustained gains.

Key Quotes

24-hour view: “AUD traded between 0.6762 and 0.6798 yesterday, wider than our expected range of 0.6770/0.6800. The subsequent weak daily closing in NY (0.6766, -0.17%) has resulted in an improvement in downward momentum, albeit not by much. From here, barring a move above 0.6800, AUD could drift lower even though the strong 0.6730 support is unlikely to come under threat (minor support at 0.6740)”.

Next 1-3 weeks: “AUD rebounded strongly and swiftly after briefly dropping to 0.6678 earlier this month (07 Aug). Since then, the price action has been mixed as it traded mostly sideways within a 100 pips range (between 0.6736 and 0.6822). While the sideway trading has resulted in a loss in downward momentum, only a move above 0.6845 would indicate that AUD is ready for a sustained recovery. In other words, there are some early signs that the 0.6678 low could be a short-term bottom. Meanwhile, the outlook for the next several days is mixed and AUD could continue to trade sideways for a while more. Looking slightly ahead, a NY closing below 0.6730 would suggest that AUD is ready to tackle 0.6678 low”.

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.

Feed news

Latest Forex News

Editors’ Picks

When is the Aussie CPI data and how could it affect AUD/USD?

Considering the recent shift in the market’s risk sentiment, mainly due to the positive headlines from China, any upbeat reading can help buyers ahead of today’s Fed meeting. If the price pressure keeps being soft, odds concerning the RBA moving closer to negative rates increase, which in turn will pull AUD/USD below its multi-week low.

Read more

USD/JPY bulls step in on optimism surrounding coronavirus

As far as the coronavirus goes, the latest reports are that the number of known cases of the new virus rose by nearly 60% overnight.

USD/JPY News

3 Questions for the Fed

After experiencing its largest one day decline in months, stocks rebounded on Tuesday. While some investors may hope that the worse is over, it is important to realize that the full effects of the coronavirus has not been seen.

Read more

Gold drops further near $1565 amid risk appetite

Gold prices continued to move lower during the American session and reached a fresh daily low at $1566/oz.

Gold News

GBP/USD below 1.3000 ahead of BOE

The dollar continues to advance against all of its major rivals, getting an additional boost from upbeat CB Consumer Confidence. GBP/USD trading around 1.2980. BOE to have a monetary policy meeting this Thursday.

GBP/USD News

Forex MAJORS

Cryptocurrencies

Signatures