AUD/USD still neutral, door open to 0.7730 – UOB

There is still room for the Aussie Dollar to test the 0.7730 vs. the buck in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to move higher towards 0.7880 yesterday but were of the view that a clear break is unlikely. AUD managed to hit a high of 0.7893 before pulling back sharply. The mild upward pressure has eased and the current movement is viewed as part of a consolidation phase. In other words, AUD is expected to trade sideways for now, likely within a 0.7820/0.7880 range”.

Next 1-3 weeks: “AUD traded ‘quietly’ last Friday and closed largely unchanged. We continue to detect a weak undertone and this could lead to a move lower to test the solid support at 0.7730. On a shorter-term note, 0.7760 is already quite a strong level. Overall, we continue to expect AUD to stay under pressure unless it can reclaim 0.7910”.