AUD/USD could slip back to lower levels ahead of some consolidation in the near term, noted FX Strategists at UOB Group.
24-hour view: “AUD traded between 0.6743 and 0.6788 yesterday, lower and narrower than our expected sideway trading range of 0.6755/0.6805. Downward pressure has picked up slightly and AUD could edge lower to 0.6730 from here. The next support at 0.6705 is not expected to come into the picture. Resistance is at 0.6770 but only a move above 0.6785 would indicate the current mild downward pressure has eased”.
Next 1-3 weeks: “The positive underlying tone that we highlighted on Monday (14 Oct, spot at 0.6795) has dissipated as AUD slumped by -0.39% yesterday (0.6751). The price action was not exactly surprising as we highlighted “further AUD strength only likely if there is a NY closing above 0.6805”. From here, AUD is deemed to have moved into a sideway-trading phase even though the near-term bias is for it to probe the bottom of the expected 0.6670/0.6785 range first”.
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