AUD/USD: extra gains likely above 0.6845 – UOB

Pablo Piovano FXStreet

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”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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